UNECA: African Trade Policy Center (ATPC) Dry Port Service Enterprise

Feasibility Study of Dry Ports in Ethiopia

Morning Presentation

Objectives, Scope of Work & Methodology

Project Objectives To undertake Feasibility Study of DPSE to Reduce Corridor Costs To recommend Trade-Transport Facilitation Measures for Addis-Djibouti Corridor To propose Dry Port Network

Scope of Work & Methodology Review available relevant data & dry port experiences Collect data, stakeholders consultation & field survey Analyze, forecast & apply available corridor data Asses corridor capacities: the ports, transport & facilitation Analyze hinterland, port traffic assignment and modal split Costs and benefits analysis of DPSE & investment program Identify possible future network. Reviewing policy & legal framework Establishing effective DPSE & the way forward

Flow Chart of Dry Port Planning Model

Production

Tra Dom estic Trade

Central

Im port

Flowchart of the Study Sequence

Mobilization & Kic

Desktop Studie Collection & A

Inception Re

Study Trips & S Assessmen

Review of Relevant Documents & Experiences

Basic Policy Sources, Frameworks and Guidelines of the Study1. National Sources Macro-economic Policies and Strategies (MOFED) General Development Vision of the Government (MOFED) ADLI, PASDEP and Sectoral Programs (MOFED) Foreign Trade achievement, status, programs and strategies Transport Sector Status, programs and strategy Bilateral Agreements with Neighboring countries: Djibouti, Kenya and Sudan COMESA Trade & Transport Components AU, UNECA, SSATP, ADB Source, (Data, studies and resolutions) UN and Donors Sources: World Bank, EU and Bilateral. UNCTAD & AL maty Declaration and Program of Action WTO and Doha resolution Academic and research documents Lessons learned from the best practices and websites

1.

Regional Sources

1. International Sources

1.Transit Rights of Landlocked Countries The full right of access to and from the sea by all modes of transport The provision of transit facilities and removal of all obstacles Exemption of transit trade from custom duties and all other payments

2. Foreign Trade Transport CorridorsDefinition:T y p ic al S tru ctu re o f F ore ig n T ra d e R o u te

L andA LCCD ry P o rt

S eaB CC S e aP o rtXR o a d /R ail O /D S h ip p in g

Land

C S eaP o rtY

O /D

L C C = L a n d lo c k e d C o u n tr y O /D = O rig in /D e stin a tio n

C C = C o a sta l C o u n try A , B , C = T ra d in g & T r a n sit C o u n tr ie s

Foreign Trade Transport Corridors ESA has about 17 corridors of which 7 are Ethiopians East Africa has the highest transport cost for import LLCs pay twice that of the coastal countries In Ethiopia (2008) about 12.4% of export and 17% of the import values or a weighted average of 16% of the foreign trade values is consumed by transport and transit costs. A number of efforts are being made to reduce transit costs & improve trade competitiveness by AU/AfDB, UNECA, RECs, SSATP, EU, UNACTAD, USAID & etc.

Freight cost as % of import value

Ratio of Transportation and Insurance Cost export value 2001

Relative transport costs for coastal and landlocked countries in Africa ( US $ / TEU)Destination Northern Europe Japan Origin North America

Senegal Mali via Senegal Ghana Burkina faso via Ghana Cameroon Central Afr. Republic Tanzania Rwanda via Tanzania Burundi via Tanzania Zambia via Tanzania

$ 1 610 $ 2 380 $1 815 $ 2615 $ 1520 $ 2560 $ 1 380 $ 3 880 $ 4 530 $ 3 250

+ 48% + 44% + 68% 181% 228 % 135%

$ 4 100 $ 4870 $ 3 025 $ 3835 n.a n.a $ 1 350 $ 3 850 $ 4 500 $ 3 220

+ 19% + 27%

n.a n.a $ 2 460 $ 3 260 + 32% n.a n.a

+ 185% + 233% + 138%

$ 2 000 $ 4 500 $ 5150 $ 3 870

+ 125% + 157% + 93%

Source: Improving Trade Development Prospectus of Landlocked and Transit Development countries, UNCTAD, UNCTAD/DITC/TNCD/2003/7(2003

Total Transit Cost on Djibouti Corridor(2008)Services Transit Costs US$/TEU/Ton Per TEU Inland Transport* Shipping Ports Inland Transport Total Traffic Size in 000 Value USD 500 1,500 700 1000 3,700 124 11,364 G/Cargo (Tons) 30 90 20 60 200 664 947 Dry Bulk** (Tons) 90 50 17 60 217 2,420 0.30

Source: Djibouti Port and Consultant estimate

2005 Ministerial DeclarationThe relevant decisions of the 2005 Declaration of African Ministers to implement by 2015 include:

Dismantling all physical, non-physical transport barriers that increase journey times, customs clearance and border delays and impede the flow of goods and services. Reduction of transport cost of LLCs by half and improve their access to global markets.

3.Dry Port Studies International

UNCTAD (1991) HANDBOOK of DRY PORTS INLAND CONTAINERS TERMINAL ANALYSIS (2006) International & African Resolutions & Declarations Feasibility Study of Inland Clearing Depots in Ethiopia (2001) Study of Inland Container Depot (2002) in Kality, Ethiopia Study for the Development of Dry Ports (2006) Upgrading Corridor Roads Issuing Multimodal Transport Law Signing Bilateral Transit AgreementsEstablishment of DPSE & Construction of Mojo & Semera DP Initiation of Railway Network Development

Domestic studies

Actions taken & on-going

Major Foreign Trade Transit Players and Constraints in EthiopiaMajor Players1. Traders

Major Problem AreasTrade-related problems Transactions, Bank & Insurance, Permits, Cargo readiness, adequate storage, prompt loading/unloading at premise, timely Payments Transport-related problems Infrastructure, fleet capacity, service quality Regulation-related problems Inspection, check points, tax-collection, law enforcement, clearance, performance system & procedures Coordination-related problems Documentation, Coordination, problemsolving Transit-related problems Joint border posts, harmonization, coordination & enforcement

ResponsibilityService Users Trade Sector: importer & exporter and/or his agents;

2. Transporters

Service-Providers Transport Sector: Shipping, ports ERA for Road, truckers/railways Trade Regulators Customs, Standards MOA, MOTI, MOTC Federal Government (BPR) and private sectors (Possibility of one-step system) Bilateral agreements, decisions and actions of transit (LL and coastal) countries & entities, RECs, Development partners

3. Regulators

4. Coordinators 5. Facilitators

Profile of Ethiopian Economy

General Profile

Economic Development & AchievementAverage Annual growth over last 5Y (2008) GDP: 11.7% with agri. 42.5% , industry 12.1% & services 45.4% Foreign Trade: total 27% with export 25% and import 27.7%. Savings: Domestic saving of 17% of the GDP. Investment: 21%. Projects: approved new projects 18% & investment 56%. Economic stability: maintain economic stability within acceptable limits and achieve socio-economic development goals. Per Capital GDP: increased to USD 213 (real) and USD 340 (nominal).

Status of Road Transport SectorCriteria1. Network Size/length (km) (Total) Paved Roads Gravel Roads Rural Roads 2. Network Density (km) Per 1000 km2 Per 1000 inhabitant (km) 3. Network Quality (% in good condition) (Total) Paved Roads Gravel Roads Rural Roads 4. Accessibility Proportion of area >5km from road (%) Average distance to a road (km) 5. Mobility No. of Vehicle fleet Annual Average Daily Traffic (AADT) Average Vehicle km of travel (AVKM (Mn)

199726,550 3,708 12,162 10,680 24.1 0.46 22 17 25 21 79 21.4 75,320 51,078 4.12

200844,359 6,066 14,363 23,930 40.3 0.56 38 68 53 49 67 12.4 184,387 142,262 9.33

% Improvement Over-all67 64 18 124 67 17 73 300 112 133 15 42 145 179 127

Annual4.8 4.6 1.5 7.6 4.8 1.8 5.1 13.5 7.1 8.0 1.5 4.8 9.4 10.8 8.5

Source:- ERA & Consultants Estimate

Existing Logistics Gap Problems High Port charges and reduced port free time Inadequacy of domestic storage facilities Uncoordinated bulk imports Delays in documentation & inspection Low utilization of vehicle fleet.

Driving forces for change Rapid growth of the Economy & Trade Increased Transit Costs Natural , human and international related problems Multiplicity of Transit Options Better Opportunities

Area of 1500 masl External Routes

Foreign Trade Sector

Foreign trade related Licenses (Sept 30/2007)S.No TRADE FIELD Number Capital (Birr Mn.)

1 2 3 4 5 6 7

Export Import Export & Import Foreign Trade Auxiliary Customs Clearance Forwarding & Ship Agent Commercial Representative Total

8,386 9,290 2,930 2,993 523 46 61 24,249

4,363 5,065 3,164 3,164 612 721 44 14,640

Source: - Ministry of Trade & Industry November 2007

Analysis of 10 &5 Year Foreign Trade TrendsYear GDP Import 1997/8 2002/3 2007/8 55.5 73.4 245.6 11.4 20.1 76.6 Foreign Trade Export 7.1 9.8 28.3 Total 18.5 29.9 104.9 33.3 40.1 42.7 -4.3 -10.3 -48.3 % of GDP Trade Deficit

Trade Volum (000 M e T) 1997 /8 2002 /3 2007/8

Trade Value (Br. M n) 1997 /8 2002 /3 2007 /8 59,750 71,690 7.64 11.7 124,800

GDP at CMPAAGR (% 10 Yrs )

5 Yrs

ExportAAGR (% Yrs )10 5 Years

273

397 11.42

805 15.19

3,719

3,

186 8.25 2 3,382 17 .39 2

8 0.86 1.78

,216

Elasticity

1.56 2,425 3,387 7.83 5,153 8.76 2. 28 2,698 3,784 8.24 9.5 1.97 5,956 11,210 1 1 6,573 5.03 2 7,491 1

ImportAAGR(% 10 Yrs )

37 ,237 2.71 1.94 45 ,453 2.36 1.91

5 yrs Elasticity

TotalAAGR (% 10 Yrs ) 5 Yrs

Elasticity

Volume of Major Imports by type of Commodity (in 000MT)Year Commodity Grain Fertilizers Petroleum Chemicals Medical etc Paper etc Textiles etc Metal etc Machinery etc. Others2007/8 2008/9 2009/0 2010/1 2011/2 2012/3 2013/4 2014/5 2015/6 2016/7 2017/8 360 36 2,017 17 33 35 31 164 45 37 2,802 219 175 1,067 121 39 176 46 218 102 57 2,269 23 234 1,095 34 72 467 81 199 109 68 2,414 360 80 950 30 51 123 41 262 119 123 2,199 694 302 945 19 43 50 46 273 72 85 2,566 621 252 1,461 20 46 54 52 257 64 70 2,941 629 383 1,034 23 55 67 71 294 80 143 2,858 535 352 1,823 23 69 80 118 539 101 215 4,027 716 397 1,229 47 132 138 90 579 1,208 224 4,877 507 273 1,454 42 80 99 73 796 216 194 3,834

433 479 1,619 48 76 111 72 733 177 828 4,683

Total

Source:- National Bank Report (2008) & Ethiopian Customs Authority as adjusted to avoid double counting of grain

Volume of Major Export by type of commodity (in 000MT)1998 Year Commodity 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Coffee Pulses Oilseeds Meat/ Hides Fruits/veg. Others Total

120 31 67 10 17 29 274

101 30 51 8 19 18 227

117 24 43 11 21 35 251

99 27 55 13 17 69 280

110 109 76 11 30 65 401

126 66 83 13 25 84 397

156 73 106 13 37 38 423

161 122 171 23 38 56 571

148 110 266 23 35 62 644

176 159 235 22 41 80 713

171 233 152 18 40 148 762

Source:- National Bank Report (2008) & Ethiopian Customs Authority

Classification of Import and Export ProductsNo Categories Export Products Commodities (2008 Date) % Import Products %

1

Containerizable (100%) Break bulks

Coffee, Oil seeds, pulses, spices etc Fruits & Vegetable

87

General cargo, Consumers goods, Clothing. Plastics, Glasses etc 50% 10%

2 3

Semi-Containerizable (2/3) Non-Containerizable (100%) Dry bulk Liquid bulk Others Total Containerizable

3 Chemicals, metals & metal works etc Fertilizer, cement & grain, 10 Petroleum, Vehicles & heavy machinery 89

Live-animals, flowers

40%

57

Monthly Commodity and Traffic Flows between Djibouti Port and EthiopiaMonths (2008-2009) Import Commodities by Major Categories Vehicle turn-around Petroleum

Trade & Industry

Vehicles

Food Items

Fertilizer

Grand Total

Trucks*

Wagon

Tonnage

Tanker Turn Around**

July August September October November December January February March April May JuneTotal Av.Monthly Av.Daily

246,007 287,717 263,608 390,400 302,139 303,571 303,391 322,118 366,345 353,831 333,116 366,047 3,838,290 319,858 10,662

1,436 1,282 1,358 1,454 1,234 1,290 969 1,268 782 764 617 660 13,114 1,093 36

44,493 120,680 110,337 109,877 165,620 181,059 141,358 127,176 99,170 31,791 26,870 17,562 1,175,993 97,999 3,267

207 327 224 140 1 241 7,127 33,207 51,270 97,126 121,267 64,698 375,835 31,320 1,044

292,143 410,006 375,527 501,871 468,994 486,161 452,845 483,769 517,567 483,512 481,870 448,967 5,403,232 450,269 15,009

10,437 13,562 12,216 15,888 15,051 15,811 15,127 17,392 16,290 14,862 15,081 17,150 178,867 14,906 497

74 23 22 59 84 11 26 17 20 6 24

170,296 188,352 160,698 158,659 165,574 185,535 182,250 181,185 218,383 199,777 208,703 202,787

4,039 4,468 3,808 3,755 3,924 4,390 4324 4,292 5,151 4,727 4,952 4,720 52,550 4,379 146

366 2,222,199 31 1 185,183 6,173

Trade &Transport Links with NeighborsArea (ooo km2) Popn (000) PCI (USD) Trade (Br Mn)* No of border Links Port Distance To Addis (km) Nearest Distance to border (km)

Djibouti Somalia Kenya Sudan Eritrea Ethiopia

23 638 583 2506 121 1127

779 9,500 38,000 40,000 5,500 76,500

950 600 1800 340 700 200

3012 1013 421 2144 6590

2 4 2 6 4 18

910/782 937 2067 1990 1163/882 -

100 241 1290 952 67 -

Transport and Communication Links to NeighborsServices1. Communications 2. Airlines 3. Shipping

Linked CountriesAll Countries All Countries All Countries

Type of Links and border townsFiber Optics, Microwaves and Satellites Through ET and other airlines Through Ethiopian And other Shipping Lines Baro-Akobo seasonal river navigation Addis Djibouti Line (CDE) Gelafi, Dewale Togwuchale, Awbere, Ferfer and Dolo Moyale, Kelem Boma, Jakaw, Kurmuk, Guba, Metema, Humera Humera, Rama, Zalambesa and Bure

4. Inland Waterways Sudan 5. Railways 6. Roads Djibouti 6.1 Djibouti 6.2 Somalia 6.3 Kenya 6.4 Sudan 6.5 Eritrea

Forecasting Foreign Trade Transport Demand

Major quantitative methods for external trade forecasting Regression Model:-

Y = E(Y/X) = a + bX RT= { (Tn/To )1/n -1} 100

(Bivariate Model)

The Compound Growth Rate Model :When RT= Growth rate of trade Tt = Trade in year n To= Trade in year zero n = Number of years involved

ERA Traffic Analysis (for verification)

15 year projection of the Ethiopian Foreign Trade Traffic (000MT)Import Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 10% 4,683 5,151 5,666 6,233 6,856 7,542 8,296 9,126 10,038 11,042 12,146 13,361 14,697 16,167 17,784 19,562 12% 4,683 5,245 5,874 6,579 7,369 8,253 9,243 10,353 11,595 12,986 14,545 16,290 18,245 20,434 22,886 25,633 14% 4,683 5,339 6,086 6,938 7,909 9,017 10,279 11,718 13,359 15,229 17,361 19,791 22,562 25,721 29,322 33,427 12% 762 853 956 1,071 1,199 1,343 1,504 1,685 1,887 2,113 2,367 2,651 2,969 3,325 3,724 4,171 Export 14% 762 869 990 1,129 1,287 1,467 1,673 1,907 2,174 2,478 2,825 3,220 3,671 4,185 4,771 5,439 16% 762 884 1,025 1,189 1,380 1,600 1,857 2,154 2,498 2,898 3,362 3,899 4,523 5,247 6,086 7,060

Forecast of Import and Export Tonnage and Container TrafficIm p ort Y ear P etroleum 200 7/8 1 ,3 68 T on nag e D ry B u lk C argo G en era l C argoT otal 1,1 63 2,152 4,68 3 C ontain erizables E xport C on tain erizab le C ontaineri N o. of T o nn ag B rea k-B ulk e* N o. o f T E U T o tal T on n ag e zable** TEU 2 ,5 53 2,1 30 12 4 7 62 6 57 33

2 0 08 /9 2 0 09 /1 2 0 10 /1 2 0 11 /2 2 0 12 /3 2 0 13 /4 2 0 14 /5 2 0 15 /6 2 0 16 /7 2 0 17 /8 2 0 18 /9 2 0 19 /0 2 0 20 /1 2 0 21 /2 2 0 22 /3

1 ,53 2 1 ,71 6 1 ,92 2 2 ,15 3 2 ,41 1 2 ,70 0 3 ,02 4 3 ,38 7 3 ,79 4 4 ,24 9 4 ,67 4 5 ,14 1 5 ,65 5 6 ,22 1 6 ,84 3

1 ,3 03 1 ,4 59 1 ,3 83 1 ,5 79 1 ,7 99 2 ,0 45 2 ,3 20 2 ,6 29 2 ,9 74 3 ,3 61 3 ,6 97 4 ,0 67 4 ,4 74 4 ,9 21 5 ,4 13

2 ,4 1 0 2 ,6 9 9 3 ,0 2 3 3 ,3 8 6 3 ,7 9 3 4 ,2 4 8 4 ,7 5 7 5 ,3 2 8 5 ,9 6 8 6 ,6 8 4 7 ,3 5 2 8 ,0 8 7 8 ,8 9 6 9 ,7 8 6 1 0,7 6 4

5 ,2 45 5 ,8 74 6 ,3 28 7 ,1 18 8 ,0 02 8 ,9 92 1 0 ,1 0 2 1 1 ,3 4 4 1 2 ,7 3 5 1 4 ,2 9 4 1 5 ,7 2 3 1 7 ,2 9 5 1 9 ,0 2 5 2 0 ,9 2 7 2 3 ,0 2 0

2 ,85 9 3 ,20 2 3 ,33 5 3 ,76 5 4 ,24 7 4 ,78 7 5 ,39 2 6 ,06 9 6 ,82 7 7 ,67 7 8 ,44 4 9 ,28 9 1 0 ,21 8 1 1 ,24 0 1 2 ,36 3

2 ,3 86 2 ,6 72 2 ,9 93 3 ,3 52 3 ,7 55 4 ,2 05 4 ,7 10 5 ,2 75 5 ,9 08 6 ,6 17 7 ,2 79 8 ,0 07 8 ,8 07 9 ,6 88 10 ,6 57

14 3 16 5 19 0 21 9 25 3 29 1 33 6 38 7 44 7 48 7 53 5 58 9 64 8 71 3 78 4

869 990 1,1 2 9 1,2 8 7 1,4 6 7 1,6 7 3 1,9 0 7 2,1 7 4 2,4 7 8 2,8 2 5 3,1 6 4 3,5 4 4 3,9 6 9 4,4 4 5 4,9 7 8

749 854 973 1 ,1 1 0 1 ,2 6 5 1 ,4 4 2 1 ,6 4 4 1 ,8 7 4 2 ,1 3 7 2 ,4 3 6 2 ,7 2 8 3 ,0 5 5 3 ,4 2 2 3 ,8 3 3 4 ,2 9 2

39 47 56 66 79 94 1 12 1 33 1 42 1 62 1 82 2 04 2 28 2 56 2 86

Forecast of Foreign Trade Container & Break Bulk Commodities to be handled by DPSE (000)Year Tonnage* 2007/8 2,130

ImportNo. of Containers 124 Break Bulk Tonnage Tonnage* 762

ExportNo. of Containers 33 Break Bulk Tonnage 267

2008/9 2009/1 2010/1 2011/2 2012/3 2013/4 2014/5 2015/6 2016/7 2017/8 2018/9 2019/0 2020/1 2021/2 2022/3

2,386 2,672 2,993 3,352 3,755 4,205 4,710 5,275 5,908 6,617 7,279 8,007 8,807 9,688 10,657

143 165 190 219 253 291 336 387 447 487 535 589 648 713 784

573 528 474 412 343 269 193 119 52 37 41 45 49 54 59

869 990 1,129 1,287 1,467 1,673 1,907 2,174 2,478 2,825 3,164 3,544 3,969 4,445 4,978

41 50 61 74 88 104 122 142 162 186 208 233 261 292 327

253 234 211 182 150 115 78 44 50 38 43 48 53 60 67

Potential Corridors of Ethiopia

Northern Central

Southern

The Structure of the Ethiopian Corridors

Towns Lat

Location Long

Region/ Country Sea Port

Distance Addis Ababa

Woreda Population (2008)

Traffic ADT Truck Traffic

Central CorridorMojo/Addis 08 36 39 07 Oromia 914 71 149610 12182 6604

Secondary Dry PortsJijiga 09 22 42 50 Somali 315 616 369523 526 288

Regional Freight StationsHarar 09 28 42 04 Harar 415 516 131000 1574 454

Border PostsTogwuchale 09 27 43 30 Somali 241 74.3 287071 405 244

Sea PortsBerbera 10 15 45 11 Somale Land 931

Port of Berbera Layout

Towns Lat

Location Long

Region/ Country

Distance Sea Port Addis Ababa

Woreda Population (2008)

Traffic ADT Truck Traffi c

Central CorridorMojo/Addis

08 09 13 13

36 22 00 00

39 42 42 42

07 50 10 41

Oromia Somali Afar Eritrea

914 315 67

71 616 820 887

149610 369523 65911

12182 526 139

6604 288 43

Secondary Dry PortsSemera

Border PostsBure*

Sea PortsAsab

Port of Assab Layout

Towns Lat

Location Long

Region/ Country Sea Port

Distance Addis Ababa

Woreda Popn. (2008)

Traffic ADT Truck Traffic

Central Corridor Mojo/Addis Front Line Corridor Mekele Regional Freight Stations Kombolcha Woldiya Adigrat Border Posts Zalanbesa Sea Ports 14 27 39 24 Tigray 284 933 112360 403220

08

36

39

07

Oromia

914

71

149610

12182

6604

13

28

39

29

Tigray

437

780

184973

1803

935

11 11 14

00 48 17

39 39 39

44 30 27

Amhara Amhara Tigray

557 433 317

400 520 900

75438 46855 190066

1340 1803 993

724 935 521

Port of Massawa Layout

L ca n o tio Tws o n Lt a 0 8 1 1 1 2 1 2 1 9 3 6 3 7 5 8 5 8 3 0 3 9 3 7 3 6 3 6 3 7 Ln og 0 7 2 2 1 2 1 2 2 0

R io / eg n C u tr on y

D n ista ce S P rt ea o Ad is d Aa a bb 7 1 55 6 92 0 92 0 10 18

W red o a Pp. on (2 0 ) 08 191 460 138 849 800 30 800 30

T ffic ra AT D 112 28 27 79 39 6 39 6 T ck ru Ta r ffic 60 64 16 49 22 1 22 1

C tra C rrid r en l o oM jo d is o /A d Bh Dr ar a Mtem e a O m ro ia A h ra ma A h ra ma A h ra ma Sdn ua 94 1 15 13 86 1 86 1

S n a D P rts eco d ry ry o R io a F h S tio s eg n l reig t ta n B rd P sts o er oMtem e a

S P rts ea oPr Sdn ot ua

Port Sudan Layout

Towns Lat

Location Long

Region/ Country Sea Port

Distance Addis Ababa

Woreda Popn. (2008)

Traffic ADT Truck Traffic

Central Corridor Mojo/Addis Front Line Corridor Mekele Regional Freight Stations Kombolcha Woldiya Adigrat Border Posts Zalanbesa Sea Ports Masawa 15 38 39 29 Eritrea 1217 14 27 39 24 Tigray 284 933 112360 403220

08

36

39

07

Oromia

914

71

149610

12182

6604

13

28

39

29

Tigray

437

780

184973

1803

935

11 11 14

00 48 17

39 39 39

44 30 27

Amhara Amhara Tigray

557 433 317

400 520 900

75438 46855 190066

1340 1803 993

724

935

521

Port of Mombasa Layout

L ocation T n ow sC tra C rrid r en l o o M jo d is o /A d S econ a D P rts d ry ry o Jijig a R io a F eg n l reigh S tion t ta s H ra a r G e od B rd P sts o er o F erfer S P rts ea o Mg d u o a ish 0 3 8 6 0 9 0 9 0 5 0 5 0 2 2 2 2 8 4 5 0 3 0 0 3 9 4 2 4 2 4 3 4 5 4 5 0 7 5 0 0 4 2 8 0 5 3 0

L at

L g on

R egion / C n ou tryO ia rom S a om li H ra a r S a om li S a om li S a om lia

D istan ce S P ea ort91 4 31 5 41 5 28 0 35 0

Ad d is A ab b a71 6 16 5 16 1 5 18 66 5 .4 1 6 20

W ored a P n op . (2008)1 61 49 0 3 52 69 3 1 00 31 0 1 44 79 4 41 1 91

T raffic T ck ru A T D T raffic121 2 8 5 26 157 4 1 28 8 81 6 4 60 28 8 45 4 99 46 3

Port of Mogadishu Layout

L c tio oa n Tws o n Lt a Ln og Rg n e io / C u tr on y S aP r e ot

D ne ista c Ad d is A aa b b

Wr d oe a Pp . on (2 0 ) 08

Ta r ffic AT D Tu r ck Ta r ffic

C n a C rr o e tr l o id rM jo d is o /A d 0 8 3 6 3 9 0 7 O o ia rm 94 1 7 1 191 460 112 28 60 64

F o t L e C r id r r n in o r oS e em ra 1 1 2 4 4 0 2 7 A r fa 35 8 60 0 978 13 17 02 90 4

B r e P sts odr oG lfi a 1 2 0 0 4 2 0 0 A r fa 27 1 78 6 691 51 10 2 7 90 4

S aP rts e oD o ti jib u 1 1 4 5 4 3 1 0 D o ti jib u 95 1 8 /8 2

Port of Djibouti Layout

1 500 1 300 1 00 1 90 0 70 0 50 0 30 0 1 002004 2005

Vessel Calls97 4 1 ,000 1 ,047

1 1 ,41

1 ,398

2006

2007

2008

8000000 7500000 7000000 6500000 6000000 5500000 5000000 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0

6 ,9 0 0 ,3 79

Total Volume of Djibouti Port (MT)5,2 9 1,13 1 3 ,8 6 2 ,3 9 0 3 ,3 6 3 ,50 3 3 ,74 3 ,3 3 2

2004

2005

2006

2007

2008

400000 350000 300000 250000 200000 150000 100000 50000 0 2002 2003 2004 2005 2006 2007 2008

Container Throughput (TEU)

Import

Export

TS

Profile of Port of DjiboutiNo.1 2 3 4 5 6 7 8 Name Location Country/REC Maritime Routes Infrastructure Equip. & Lab force Management Capacity

Descriptor Port of Djibouti

Description

19o53N - 37 o 13E, at Strait of Bab-el Mendeb a confluence of the Red Sea and Gulf of Aden Djibouti; East/Horn of Africa; IGAD, COMESA Strategically located on Maritime routes connecting it directly to Europe, Middle East and Asia No. of berths 15, adequate warehouse and port structures, dry port, free port and container and petroleum terminals Adequate dry-bulk, break-bulk and container handling equipment for normal operation but shortage of labor with about 5000 employees Managed by Dubai Port International (DPI) under a 20 year management contract to manage and develop the port including development of free trade zone. Total Capacity: 10Mn tons; Cargo handled: 6.25Mn dry and 2.29Mn liquid bulk cargo in 2008. It also handled 152,798 import and 140,167 export containers (2008)

9 10

Performance Cost of Services

Perth throughput container handling 20/hr, container stay time 12 days; cargo stay time of 20 days, transit time of inland transport 3 days Container handling costs are as follows: Port charges is US$ 650/TEU, stuffing/unstuffing is US$113/TEU, Port Dues is US$45.3/TEU and storage charge is US$6.35/TEU and the total cost of US$650/TEU and 20/ton

Profile of Port of DjiboutiNo.11 12 13 14 15

DescriptorCountries Served

DescriptionDjibouti (domestic), Ethiopia (landlocked) and some transshipment to other ports. It now serves about 98% of Ethiopian traffic which is about 85% of the whole port traffic.

Corridor Design. Djibouti-Addis Corridor, the main import-export corridor of Ethiopia. There is a Joint transport agreements and corridor committee to follow the implementation Transport Modes Strength Weakness Road = Railway = 910km, in very good condition, and another under consideration. 782km, old and in bad conditions but is now under rehabilitation.

Good location, commercialized through private management, good infrastructure and equipment, adequate traffic, and completion of modern Duraleh container terminal Relatively expensive, poor handling of drivers and rail service, lack of rail siding to Duraleh in Djibouti delay in signing of the SAD agreement, monopolistic attitude in providing services and increasing port charges without consultation. Big economic growth of Ethiopia, rehabilitation of Ethio-Djibouti Railway and plan to construct dry port at Addis Ababa, Semera and Dire Dawa; over all good relationship including recent multi-modal and investments agreements between the two countries. Possible competition from Berbera, Assab and others; Cargo safety and security; delays at boarder crossing and transit checkpoints, poor customer relationship Further expansion of Duraleh terminal, improving cargo handling equipment and rehabilitation of CDE axle load control (of COMESA), study of US$0.5Mn, ADB projects in pipeline Transit and trade facilitation program: US$ 1Mn (same as above) Road Safety and HIV/AIDS: on major transit routes at US$1Mn for

16

Opportunities

17 18 19

Threats On-going Projects Planned Projects Way forward

20

Improving facilitation, increasing productivity, practicing client-friendly and consultative management approach, signing of SAD and separation of policy and management domain

Corridor Capacities (continued)

T=Daily dry Ports tonnage ready for delivery

Summary of Current Profile of Ports and their Related Hinterlands (Corridors)No. Key Features 1 2 3 4 Name Country Location Distance from Addis (km) From Border (km) 5 6 Hinterland Transport : Road Rail* 7 8 9 Functionality/Operational Total Capacity (Mn MT) Possible Ethiopia Share % 910 218/100 Djibouti Djibouti Berbera Somalia Gulf 937 242 Asab Eritrea Red Sea 882 76 Port Sudan Sudan Massawa Eritrea Mombasa Kenya Mogadisho Somalia Ports Central Ports Northern Ports Southern Ports

Red Sea 1900 952 1170 282

Indian Ocean 2067 1294 Southern Poor Poor Functional 10.0 10 1451 374 S.Eastern Poor Inactive 1.0 40 -

Central, Western, Southern & Eastern Good Poor Functional 10.0 85 98 750 20 Good Functional 0.5 80 1.5 Good Inactive 2.0 85 -

North & North Western Good Road Poor Functional 10.0 10 0.5 Good Inactive 0.6 40 -

10 Current Share(2008 - %) 11 Ave. Tariff** (Birr/ton) 12 Average Transit Time (hrs)

-

-

-

-

Djibouti Corridor Capacities Capacity of Seaports Adequate capacity : berths, storage areas and cargo handling equipment for normal operation but shortage of labor

Capacity of Inland transport Road capacity Adequate Capacity : PHV : Design Capacity is 1:12

Trucking Capacity Inadequate Capacity: about 25% short of the requirements

Railways capacity Insignificant Contribution : with only 80,000 tons a year (2008 ), Could increase to take up-to 30% after rehabilitation The planned railway network will change the proportion 50:50

Capacity of Dry Ports refers to the size of cargo movement into, within and out of the dry port Is a function of daily vehicle arrival, equipment, storage area and, average dwell time and operational efficiency Capacity varies with the size of the dry port itself :- Central, frontline & hinterland dry ports and freight stations

Afternoon Presentation

Dry Port Benefit & Potential Locations

Benefits of Dry ports and Freight Stations Reduced transport costs thorough increased vehicle efficiency. Improved cargo delivery time through reduced dwell time, Increased saving by shifting cargo handling Minimizing corridor risks: business, economic and political risk Increasing business activities & employment Reducing sea port congestions. Increased beneficial impacts on local & regional economic activities Provides truck parking space/stations & cargo handling facilities Offers benefits to users, regional economy & national development

Criteria for Proper Location of Possible Dry Ports and/or Freight Stations

Adequate demand threshold Availability of competitive transport Geographic/strategic centrality Balancing distance to about 300km Suitable land, utilities & safety

Proposed Logistics SystemJoint Border Posts (17) Strategic Dry Ports (9) Central DRY PORT (1) Frontline DRY PORTS (5) Hinterland DRY PORTS (3) Regional Freight Station/depots (13)

Export

Import

Jo

Port Assignment & Modal Split

Currently Functional Sea Ports & Their Hinterlands Joint Djibouti and Berbera Ports (Most parts) Djibouti Port (Dire Dawa, Harar & Awash) Berbera Port (Togochale, Jijiga & Somale Region) Other Ports ( Adjacent border zones)

Three Phase Assignment Process Phase 1 (Map 1) represents the 1st 5 year period

Three Phase Assignment Process Phase 2 intermediate 2nd 5 year period

Three Phase Assignment Process Phase 3 final 3rd 5 year period

Port Assignment (%)Port Djibouti Berbera Asab Masawa Port Sudan Mombasa Total Current 98.0 1.5 0.5 100.0 1st 5yrs 70.0 20.0 10.0 100.0 2nd FY 40.0 20.0 25.0 15.0 5.0 5.0 100.0

Hinterland DistributionZone1 2 3 4 5 6 7 8 Central Northern North Western North Eastern Eastern Southern South Western Western

Zonal CentersAA; Adama, Kality, Ambo, Zwai Mekele, Dese/Kombolcha, Shire, Adwa/Axum Bahirdar, Gonder, D/Tabor Semera, Mille, Logiya, Tendaho, Asaita DD, Harar, Jijiga Hawasa, Shashemene, Dilla, Moyale Jimma, Bedele, Mizan Nekemte, Asosa, Gambela

Import50 10 10 3 10 7 5 5

Export25 10 10 3 10 20 10 12

Djibouti Addis Corridor Traffic DistributionIn 000 MT

Period

Total

Share of Djibouti Total Less DD % Tonnage 98 70 40 40 2,088 2,628 2,647 4,263 2,008 2,328 1,847 1,066

Mojo

Semera

Dire Dawa (CDE)

2,130 1st 2nd 5th 3,755 6,617 10,657

1,606 1,863 1,477 853

402 466 369 213

80 300 800 3,197

Operational Process of the Dry Ports

Direct Delivery : Liquid bulk, dry bulk & open/oversized products Special Deliveries Delivery through dry ports: Containers, break bulks & ROROs

A General Dry Port Model & Flow Pattern

IM O T P RS IM0.7 IM0.3 IM

0.3 X E

0 .6 IM F L =C0.7 X E0 E .3 X =F L C

0 .4 IM L L = C0 E .7 X =LL C

Operational Process for Export FCL containers pass through DP 30% of export 30% of FCL containers will be inspected by customs processed in five days

LCL containers pass through DP 70% of export all LCL containers will be inspected at CFS processed in seven days

Empty containers The empty containers are exported within 15 days

Gene

Container2008/9 2012/3 2017/8 2022/23 3,000 31,000 130,000 229,000

Operational Process for Import FCL containers pass through DP 60% of imported containers 30% of FCL containers will be inspected by customs processed in seven days

LCL containers pass through DP 40% of imported containers all LCL containers will be inspected at CFS by customs processed in ten days

Empty containers stay at empty container stack for up to 15 days for possible reusing for export

General Dr

Containers (000 2008/9 2012/3 2017/8

14 126 48

Evaluation of DPSE Project

Evaluation of the DPSE Project Basic approach for benefit-cost analysis Identify & quantify benefits & costs Prepare discounted cash flows. Benefit- Cost Analysis with relevant criteria Sensitivity analysis : Assessing possible risks

Quantifiable benefit components Savings due to increased transport efficiency Savings in reduced dwell & transit time Shifting stripping & stuffing activity to dry port

Evaluation of the DPSE . Quantifiable cost components Infrastructure Costs Equipment Costs Operation Costs Peculiar features of benefits and costs Capital intensive project Sunk cost (about 10%) Widespread of the benefits and costs Foreign exchange savings

Pricing of Dry Port Services Key services for Pricing Cargo handling charges Storage-occupancy charges Other service charges

Bases for Pricing value-of-service - marginal cost pricing cost-of-service- full-cost/average cost pricing Application of other comparable sources

Pricing of Dry Port .. Constraints Lack of detailed cost data Absence of DPSE pricing experience Establishing Preliminary Prices eg cargo consolidation) Djibouti port rates on higher side (US$113/TEU) Comet rates on lower side (US$32/TEU) Generally observed rates (US$72/TEU)(

Proposed Rate for analysis: average of domestic rates i.e 50% of the Djibouti rates(US$ 57 (0.5*113)

Proposed Preliminary Tariff Structure for Major DPSE Services (US $)ServicesContainer Cargo Free day Storage charges/TEU 9-15 days 16-20 days Container cleaning and inspection Lift on/off charge Empty Loaded Internal movement Stripping or stuffing Storage of Empty Container TEU/Day Charges for handling export Export Empty Export Full General and bulk Cargo Open Storage/Ton/Day Warehouse Storage Dangerous Cargo/Day Vehicles Storage Up to 3tons Over 3tons 5.3 11 2.65 5.5 0.05 0.2 0.4 0.025 0.1 0.2 17 116 8.5 58 3.75 2 1.875 37 113 32 5.65 7.05 17 37 16 24 18.5 56.5 5 2.85 3.55 8.5 18.5 8 10 7

Djibouti

Comet

Proposed

Quantifiable Benefits of the Project

Savings in trucking costs Savings in dwell & transit times Savings in Container Stripping and Stuffing Costs Foreign Exchange Savings

Benefit/Revenue of Dry PortsYear Import2007/8 2008/9 2009/1 2010/1 2011/2 2012/3 2013/4 2014/5 2015/6 2016/7 2017/8 2018/9 2019/0 2020/1 2021/2 2022/3

National Export 375 922 1,680 2,694 4,016 5,699 6,649 8,919 11,688 16,994 19,034 21,318 23,876 26,741 29,950 7,036 9,442 12,616 16,744 22,054 28,351 35,150 44,799 56,837 71,154 78,682 87,013 96,231 106,433 117,725 Total 6,661 8,520 10,936 14,050 18,038 22,652 28,501 35,880 45,149 54,160 59,648 65,695 72,355 79,692 87,775

DPSE

3,151 7,249 12,508 19,185 27,590 37,633 50,104 65,514 84,468 102,006 112,279 123,588 136,037 149,743 164,831

Cost Components of Dry PortsType of Costs 1. Construction 2. Cargo handling equipment 3. Facilities & other equipment 4. Human resources 5. General expenses Nature of Costs Fixed Fixed Fixed Variable Variable

List of Equipment for Mojo and Semera Dry PortsYear

Mojo Equipment ListRS FL10 FL6 FL3 Trac Trail Vehi. Garage Total Value Eqt (Birr ''000) RS FL10 FL6 FL3

Semera Equipment ListTrac Trail Vehi. Garage Total Value Eqt (Birr ''000)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 TOT

2

1

2

2

2

3

3 3

1 1

26,869 5,727 30,000

1

1

1

1

2

3 3

1 1

16,505 5,627

4

3 5 8

22,500 3,892 2 3 1,522

3 2 2 2 3

22,500 1,522 6,160 1 2 1 2 848 3,960

12

3

4

2

9

14

6

2

119,170

1

2

2

1

4

7

6

2

28,462

Summary of Total Dry Port CostsTYPE OF PORTS Capital Costs Activity/Type of Expense Annual Total Cost of Previous Operating Costs the Project Investment12,410,377 991,244 25,541,937 2,040,091

Net Future Investment25,541,937 2,040,091

Head Office:

Birr USD

13,131,560 1,048,847

Mojo:

Birr USD

361,419,100 28,867,340 168,164,690 13,431,685

45,585,189 3,640,990 24,336,995 1,943,849

407,004,289 32,508,330 192,501,685 15,375,534

28,600,000 2,284,345 26,000,000 2,076,677

378,404,289 30,223,985 166,501,685 13,298,857

Semera :

Birr USD

Dire Dawa:

Birr USD

168,164,690 13,431,685

24,336,995 1,943,849

192,501,685 15,375,534

192,501,685 15,375,534

Other Dry Ports(6)

Birr

210,676,800

33,817,707

244,494,507

244,494,507

USD

16,827,220

2,701,095

19,528,315

19,528,315

Reg. Freight Terminals: (13) Birr

120,663,400

20,484,687

141,148,087

141,148,087

Estimated Dry Port Cost (Mn)ProjectsHead Office Mojo Semera Dirdawa Other frontline1 Hinterland Dry Port2 Regional Freight Stations3 Joint Border Posts4 Total

Qty1 1 1 1 3 3 13 17 40

Birr25.54 378.40 166.50 192.50 40.75 40.75 10.86 4.68 859.59

USD2.04 30.22 13.30 15.38 3.25 3.25 0.87 0.37 68.69

Note: 1. Other frontline:-Jijiga, Bahrdar, Mekelle 2.Hinterland Dry Port:-Nekemte, Jima & Hawassa 3.Regional Freight Stations:-Adigrat, Indasellassie, Metema, Woreta, Woldiya, Kombolcha,Assosa, Gambella, Sodo, Arbaminch, Moyale, Harer & Gode 4.Joint Border Posts:-Humera, Metema, Bambude, Kurmuk, Jikawa, Buma,Kelem, Moyale, Dolo , Ferfer, Togochale, Awbare, Dewale ,Galafi , Bure, Zalambasa, and Rama

Estimated Total cost of DPSE (US$000)Year H/O Operan 496 1,020 991 991 991 991 991 991 991 991 991 991 991 991 991 1,797 122 492 Mojo Constn 8,122 6,091 4,061 2,030 1,797 311 Equipt 2,146 457 2,396 Operan 910 1,820 2,731 3,641 3,641 3,641 3,641 3,641 3,641 3,641 3,641 3,641 3,641 3,641 3,641 68 316 122 Constn 4,195 3,146 2,097 1,049 Semera Equipt 1,318 449 Operan 486 972 1,458 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 1,944 17,673 13,957 13,734 9,655 8,373 7,008 6,576 8,373 6,765 7,384 6,576 6,576 6,576 6,576 6,576 Total

2007/8 2,011 2,012 2,013 2,014 2,015 2,016 2,017 2,018 2,019 2,020 2,021 2,022 2,023 2,024

Net Cash Flow of the dry port projectYear Total Income 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 7,036 9,442 12,615 16,744 22,054 28,351 35,150 44,799 56,837 71,154 78,682 87,012 96,231 106,433 117,725 4,860 9,553 15,641 23,433 33,304 45,230 58,684 76,667 98,807 122,788 135,472 149,564 165,131 182,328 201,326 DPSE Revenue Total Cost 17,673 13,957 13,734 9,655 8,373 7,008 6,576 8,373 6,765 7,384 6,576 6,576 6,576 6,576 6,576 6,576 Net Cash Flow Total (17,673) (6,921) (4,292) 2,960 8,371 15,046 21,775 26,777 38,034 49,453 64,578 72,106 80,436 89,655 99,857 111,149 DPSE (17,673) (9,097) (4,181) 5,986 15,060 26,296 38,654 50,311 69,902 91,423 116,212 128,896 142,988 158,555 175,752 194,750

Investment Criteria AppliedC r it e r ia D e f in it io n F o r m u la A c c e p t a n c e R u le 1 N P V N e tP r e s e n t V a lu e = A c c e p t if N P V > 0 n P r e s e n t V a lu e o f C a s h in flo w r * = d is c o u n tin g Bt Ct = M in u s p r e s e n t V a lu e o f C aNhP V s r a te t t= 0 ( 1+ r *) o u t flo w 2 IR R In te r n a l R a te o f R etu rn = TR e = r su ch th a t IhR A ccep t d is c o u n t r a t e w h ic h e q u a t e s t h e if I R R > r * p r e s e n t v a lu e s o f a n in v e s t m e n t sN P V = 0 or c a s h in f lo w d o u t f lo w an N P V Bt = B e n e f it f lo w Ct = C o s t f lo w 1 = r1 + ( r2 r1) V N P 1 + N P V 2 3 P B P P a y b a c k P e r io d = T h e N u m b eP isf n t h a t s a t is fie s PB r o A c c e p t if P B P < y e a r s , n , r e q u ir e d t o r e c o v e r t h en sta n d a rd p a y b a c k in it ia l in v e s t mre n t in c ip a,l ( PP) = t 1N C F t o pr p e r io d w h ic h in = w h r e N C F is t h e n e t e o u r c a s e is 5 y e a r s P B P I=n it ia l in v e s t m e n t u n d is c o u n t e d c a s h flo w S u m o f N e t c a s h f lo w s

Results of EvaluationS.No 1 2 3 CriteriaNPV @ 20%/ discount Rate (US$Mn)

Results National EDPSE 89.2 74.8 7 7.15 14.48 11

@12% IRR (%) Payback Period (years)

Social Cost Benefit Analysis of DPSE (000 US$)Year Annual Benfit Annual Cost Net Cash Flow Discount Rate @ 20% Discount Net Benfit @ 20% Discount Rate Discount Net @ 70% Benfit @ 70%

2007/8 2008/9 2009/10 2010/1 2011/2 2012/3 2013/4 2014/5 2015/6 2016/7 2017/8 2018/9 2019/0 2020/1 2021/2

7,036 9,442 12,615 16,744 22,054 28,351 35,150 44,799 56,837 71,154 78,682 87,012 96,231 106,433

17,673 13,957 13,734 9,655 8,373 7,008 6,576 8,373 6,765 7,384 6,576 6,576 6,576 6,576 6,576 Total

(17,672.80) (6,920.30) (4,292.50) 2,960.00 8,371.10 15,045.20 21,775.20 26,776.70 38,033.50 49,453.00 64,578.40 72,106.10 80,436.10 89,654.50 99,856.70

1 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 0.1346 0.1122 0.0935 0.0779

(17,672.75) (5,766.88) (2,980.89) 1,712.97 4,036.97 6,046.32 7,292.48 7,472.89 8,845.37 9,584.32 10,429.77 9,704.61 9,021.44 8,379.45 7,777.50 89,197

1.0000 0.5714 0.3265 0.1866 0.1066 0.0609 0.0348 0.0199 0.0114 0.0065 0.0037 0.0021 0.0012 0.0007 0.0004

(17,673) (3,954) (1,402) 552 893 917 758 533 432 321 240 153 97 62 40 (332)

Benefit Cost Analysis for DPSE (US$ in 000)Y ear 2 0 0 7 /8 2 0 0 8 /9 3 ,1 5 1 T o t a l L e s s V a tG r o s s O p e r a t i n g L e s s T a x a b leI n c o m e T a x R e v e n u e R e v e n u e 1 5 % I n c o m e C o s t P r o f it D e p r c ia t nI n c o m e ( 3 5 % ) N e t I n c o m e ( 1 2 % ) 1 2 DF 4 ,8 6 0 9 ,5 5 3 1 5 ,6 4 0 2 3 ,4 3 4 3 3 ,3 0 4 4 5 ,2 3 0 5 8 ,6 8 4 729 1 ,4 3 3 2 ,3 4 6 3 ,5 1 5 4 ,9 9 6 6 ,7 8 4 8 ,8 0 3 1 7 ,6 7 3 - 1 7 , 6 7 3 2 ,9 1 1 9 ,2 3 6 1 7 ,0 4 0 2 5 ,4 9 5 3 3 ,2 0 7 4 6 ,7 2 1 6 1 ,2 8 2 7 8 ,2 3 5 8 6 ,8 6 0 9 6 ,4 4 3 -1 7 ,6 7 3 -9 ,8 2 6 -5 ,6 1 4 728 2 ,3 0 9 4 ,2 6 0 6 ,3 7 4 8 ,3 0 2 1 1 ,6 8 0 1 5 ,3 2 0 1 9 ,5 5 9 2 1 ,7 1 5 2 4 ,1 1 1 255 808 1 ,4 9 1 2 ,2 3 1 2 ,9 0 6 4 ,0 8 8 5 ,3 6 2 6 ,8 4 6 7 ,6 0 0 8 ,4 3 9 9 ,3 6 5 1 0 ,3 8 8 1 1 ,5 1 9 - 1 7 ,6 7 3 - 9 ,8 2 6 - 5 ,6 1 4 473 1 ,5 0 1 2 ,7 6 9 4 ,1 4 3 5 ,3 9 6 7 ,5 9 2 9 ,9 5 8 1 2 ,7 1 3 1 -1 7 ,6 7 3

D F ( 1 5 % )D F ( 1 5 % 1 0 .8 6 9 6 0 .7 5 6 1 0 .6 5 7 5 0 .5 7 1 8 0 .4 9 7 2 0 .4 3 2 3 0 .3 7 5 9 0 .3 2 6 9 0 .2 8 4 3 0 .2 4 7 2 0 .2 1 4 9 0 .1 8 6 9 0 .1 6 2 5 0 .1 4 1 3 0 .1 2 2 9 - 1 7 ,6 7 3 - 8 ,5 4 4 - 4 ,2 4 5 311 858 1 ,3 7 7 1 ,7 9 1 2 ,0 2 9 2 ,4 8 2 2 ,8 3 1 3 ,1 4 2 3 ,0 3 4 2 ,9 2 9 2 ,8 2 7 2 ,7 2 7 2 ,6 2 9 - 1 ,4 9 6

4 ,1 3 1 1 3 ,9 5 7 - 9 , 8 2 6 8 ,1 2 0 1 3 ,7 3 4 - 5 , 6 1 4 1 3 ,2 9 4 9 ,6 5 5 1 9 ,9 1 9 8 ,3 7 3 2 8 ,3 0 8 7 ,0 0 8 3 8 ,4 4 5 6 ,5 7 6 4 9 ,8 8 1 8 ,3 7 3 3 ,6 3 9 1 1 ,5 4 5 2 1 ,3 0 0 3 1 ,8 6 9 4 1 ,5 0 8 5 8 ,4 0 1 7 6 ,6 0 2 9 7 ,7 9 3 1 0 8 ,5 7 5 1 2 0 ,5 5 4

0 .8 9 2 9 -8 ,7 7 3 0 .7 9 7 2 -4 ,4 7 6 0 .7 1 1 8 0 .6 3 5 5 0 .5 6 7 4 0 .5 0 6 6 0 .4 5 2 3 0 .4 0 3 9 0 .3 6 0 6 0 .3 2 2 337 954 1 ,5 7 1 2 ,0 9 9 2 ,4 4 1 3 ,0 6 6 3 ,5 9 1 4 ,0 9 3 4 ,0 5 8 4 ,0 2 3 3 ,9 8 6 3 ,9 4 8 3 ,9 0 8 7 ,1 5 3

2 0 0 9 /1 0 7 , 2 4 9 2 0 1 0 /1 1 2 ,5 0 8 2 0 1 1 /2 1 9 ,1 8 5 2 0 1 2 /3 2 7 ,5 9 0 2 0 1 3 /4 3 7 ,6 3 3 2 0 1 4 /5 5 0 ,1 0 4 2 0 1 5 /6 6 5 ,5 1 4 2 0 1 6 /7 8 4 ,4 6 8

7 6 , 6 6 7 1 1 , 5 0 0 6 5 ,1 6 7 6 ,7 6 5 9 8 , 8 0 8 1 4 , 8 2 1 8 3 ,9 8 6 7 ,3 8 4

2 0 1 7 / 8 1 0 2 , 0 0 6 1 2 2 ,7 8 8 1 8 , 4 1 8 1 0 4 ,3 6 9 6 ,5 7 6 2 0 1 8 / 9 1 1 2 , 2 7 9 1 3 5 ,4 7 2 2 0 , 3 2 1 1 1 5 ,1 5 1 6 ,5 7 6 2 0 1 9 / 0 1 2 3 , 5 8 8 1 4 9 ,5 6 4 2 2 , 4 3 5 1 2 7 ,1 3 0 6 ,5 7 6 2 0 2 0 / 1 1 3 6 , 0 3 7 1 6 5 ,1 3 1 2 4 , 7 7 0 1 4 0 ,3 6 1 6 ,5 7 6 2 0 2 1 / 2 1 4 9 , 7 4 3 1 8 2 ,3 2 8 2 7 , 3 4 9 1 5 4 ,9 7 9 6 ,5 7 6 2 0 2 2 / 3 1 6 4 , 8 3 1 2 0 1 ,3 2 6 3 0 , 1 9 9 1 7 1 ,1 2 7 6 ,5 7 6

1 4 ,1 1 5 0 . 2 8 7 5 1 5 ,6 7 2 0 . 2 5 6 7 1 7 ,3 9 2 0 . 2 2 9 2 1 9 ,2 9 2 0 . 2 0 4 6 2 1 ,3 9 2 0 . 1 8 2 7

1 3 3 ,7 8 5 1 0 7 , 0 2 8 2 6 ,7 5 7 1 4 8 ,4 0 3 1 1 8 , 7 2 2 2 9 ,6 8 1 1 6 4 ,5 5 1 1 3 1 , 6 4 1 3 2 ,9 1 0

N P V = U S$ 89.2M n @ 20% discount rate

IR R =74.80%

* i.e20+ (75 20) =i.eI= n

[ 89.2 ] = 20+ 55*0.996 74.80% = 892+ 0.33 . w hen n reaches 7 years

P B P = 7 years

t=1

NCFt

N P V = U S $ 7n. 1@ 1 2 % d i s c o u n t r a t e 5M I R R = 1 4 .4 8 %

[ 7 .1] 5 12i+. e(1=51 2*) 1 % = 12+ 3*0 .8 2= 74.4 8 7.1 5+ 1.5 0w hen n reaches 11 years

n P B P = 1 1 y e a r s I = . eN C F t i t= 1

Summary of Environmental Impacts and Mitigation MeasuresProject Type: Policy Issue: Positive Impacts: Construction of dry ports and drainage structures Establishing proper construction standards based on good engineering practices Reduce transport corridor cost, creates employment, increases income generation And proper control of gullies and erosion caused by natural conditions Gullies, erosion, deforestation, & land use changes due to natural process manly topographical, soil & geotechnical conditions of the area as accelerated by settlement Control gullies through protection dams, control & guide seasonal water flows through proper drainage structure, undertake plantation, relocate & compensate Farmers & land owners & creation of buffer zone to control noise pollution EDPSE, Local Authority etc: Policies, strategies and action plans, dissemination of guidelines, close supervision and enforcing laws and regulation Immediately compensate the 441 Mojo dwellers whose land has been taken for use by the dry port. Of the 800 affected HH about 359 farmers have already been compensated while the remaining 441Mojo dwellers are waiting the municipal decision to be given land for compensation

Negative Impacts:

Mitigation Measure:

Responsibility:

Compensation to owners

Organization and Management Legal Framework: Regulation no 136/2007 DPSE is a Public Enterprise Proc.No. 25/1992 Major activities of the Enterprise : To provide efficient loading & unloading and temporary storage facilities for foreign trade goods To perform the stripping of import and stuffing of export containers within the country To help speedy processing of foreign trade customs clearance To engage in other related activities to achieve national goals and its objectives To expand dry ports and freight stations throughout the country to help improve the logistics of foreign trade cargo

Organizational structure of the DPSE Branch (Mojo & Semera)

Project Financing Establishment of Financial Requirement Review proclamations & regulations Examine status of project components Assess present financial management system : capital structure & budgets

Proposed Capital Structure: 20:80 Source of Financing 20% own fund 80% soft loans

Programming and ImplementationN o A c ti vi ty 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 1 C o n str u c ti o n M o jo S e m e ra 2 E q u ip m e n t M o jo S e m e ra A nnua l O p e ra tio n a l 3 A c ti v it ie s M o jo S e m e ra C e n t ra l

Way forward Finalize organization, management and staffing Complete all on-going infrastructure Purchase of cargo handling equipment Establish Ethio-Djibouti Corridor Authority Join the NCTTA Review, update and adopt conventions Rationalize orders of bulk items imports Promote expansion of adequate domestic storages Improving vehicle utilization Phase out development of the dry port network Promote the participation of private sector Regularly assess quality of servicesDPSE JOINT

JOINT

JOINT

THANK YOU FOR YOUR ATTENTION