The Reporter (Addis Ababa)
Yohannes Anberbir
16 December 2006
Addis Ababa — Ethiopia and Djibouti on November 18, 2006 signed a multi-modal transport agreement which enables the effective utilization of the port of Djibouti for the coming 20 years and a door-to-door cargo transit between the two countries.
According to the agreement, on which the House of Peoples' Representatives deliberated this Tuesday, L'Association des Transistors de Djibouti, of which the Maritime Transit Services of Ethiopia (MTSE) is a member, would be the only interlocutor of the carrier (which includes the Ethiopian Shipping Lines), for clearing and forwarding activities at the port of Djibouti.
The agreement gives to the Ethiopian Shipping Lines (ESL) the right to appoint and select an inland transport operator through open bid competition and designates it or any other subcontracted shipping company as carrier for Ethiopian import cargo.
It also allows for importers and exporters to enter into a multimodal transport contract for the afreightment of their shipment in conformity with the modalities the agreement itself provides for.
The agreement requires the two countries to establish and harmonize a strict regulatory framework as well as procedures for an effective implementation of the multimodal transport system.
The agreement states that the Djibouti Port Authority may allocate loading and unloading area for cargo and would use an electronic data exchange service in order to ensure an efficient communication according to the agreement. It further provides that both Ethiopia and Djibouti will apply the Customs Transit Protocol and implement the COMESA Single Administrative Document for customs transit declaration.
The agreement also stipulates that both parties will establish a comprehensive directive which governs liability of trucking companies.
For the purpose of following up on the execution of the agreement a joint technical committee consisting of seven members from the two countries would be established.
Disputes or differences that may arise in connection with the agreement will be resolved through negotiation at the level of a Joint Technical Follow-up Committee. A final and binding decision will be given through arbitration if negotiation fails.
Unless either of the contracting parties notifies the other in writing of the intention to terminate the agreement 3 months prior to its expiry date, it will be extended for an additional period of 20 years.
Both countries have the right to terminate the agreement before the expiry date. However, the provisions of the agreement will continue to apply to contracts concluded during the period of its validity but not fully executed on the date of its termination.
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