Addis Fortune (Addis Ababa)
Wudeineh Zenebe
13 April 2008
The first batch of 300 semi-trailers and dump trucks the federal government bought from China are expected to arrive at the Port of Djibouti on Tuesday, April 15, sources active in the maritime sector disclosed.
These are part of the 2,100 heavy duty vehicles imported from China by the Ministry of Works and Urban Development (MoWUD) in a bid to alleviate the shortage of haulage vehicles for the nationwide condominium projects it is currently undertaking.
The Ministry signed an agreement with China Geo Systems (CGC) Overseas Construction Ethiopia Ltd to procure 2,000 trucks in January this year. However, it was Chinese XIAMEN XIA GONG Trading Co. Ltd. that won the contract to supply loaders and crushers after the MoWUD floated the tender.
Drivers are expected to be sent to the port next week, to drive them in.
Ethiopia's Ambassador to Djibouti, Shemsedin Ahmed Roble, wants them to serve another purpose in the meantime. In a letter he wrote to the MoWUD early last week, he urged authorities here to consider transporting pile up cargo laying in Djibouti to Ethiopia.
The Port of Djibouti is already congested. The land side of the port has been in full strain for the past few weeks, leading to trucks carrying outbound cargo staying unloaded for over 10 days. Containers are kept for an average of 20 days (on sea port yard) and 45 days (inside the dry port), while vehicles stay for 28 days.
Nonetheless, whether or not these trucks will be loaded with goods has not been decided, disclosed a senior official at MoWUD.
Once they are brought here, each of the 100 dump trucks and semi-trailers will be distributed to companies involved in the constructions of 400,000 condominiums across the country. The federal government has set out to construct 400,000 houses in Addis Abeba and other regional towns in four years. Launched in the 2006/2007, these works are projected to cost 24 billion Br. In the first year, the construction of 55,000 houses in 33 towns commenced and this number has risen to 80,000 houses in 2007/2008.
This year's housing projects require 1.5 million tonnes of cement. Another one million tonnes are heading to the port, which need transportation trucks. Moreover, 11 million cubic metres of gravel and sand also needs massive transport trucks for the housing projects.
The government will sell these trucks and trailers to groups, offering them a 70pc financing, through the Commercial Bank of Ethiopia (CBE), after winners come up with 30pc. The Ministry has short listed from the companies who had applied to acquire the trucks, and has subsequently selected Tikur Abay, Yirga Trading, Lem, Shebele, Comet, Bekelcha and Maritime in dry cargo category.
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