DHL Global Forwarding and Ethiopian Airlines are to form a joint venture company to “build the leading cargo logistics provider joint venture company in Africa”.
DHL-Ethiopian Airlines Logistics Services will be based in Ethiopia but will conduct business on the entire African continent, said the two companies in a statement.
Ethiopian Airlines, with a “majority stake” in the joint venture, will provide “regulatory and operational support” as DHL Global Forwarding establishes air, ocean, and road freight connections between Ethiopia’s main trade hubs and the rest of the world.
In early July, an Ethiopian newspaper, citing Ethiopian Airlines Group chief executive Tewolde Gebremariam, said that Ethiopian would own 51% and Germany-headquartered DHL 49%.
Few details were outlined in the joint statement, but Ethiopian Cargo is an ambitious freighter operator, With six B777 and two B757 freighters serving 39 cargo destinations in Africa, the Middle East, Asia the America’s and Europe.
In January this year, Ethiopian announced that it is to lease two converted Boeing 737-800 freighters from lessor GE Capital Aviation Services (GECAS).
Tim Scharwath, chief executive of DHL Global Forwarding, said: “By bundling our global network expertise with Ethiopian Airline’s profound knowledge of the regulatory and operational environment, we are opening up an important access to international trade for Africa’s fastest growing economy and at the same time strengthening our position in the African continent.”
Pramod Bagalwadi, a DHL veteran with over two decades of experience in management roles within the logistics industry, has been appointed to lead the new organization.
This will be an additional portfolio for Bagalwadi, who currently leads the industrial projects team for DHL in Sub-Saharan Africa.
Amadou Diallo, chief executive of DHL Global Forwarding, Middle East and Africa, said: “With its GDP growth, Africa is stepping into the spotlight as production hub. Recent moves to open up the economy will continue to boost Ethiopia’s position as the fastest-growing economy in Africa. “Under Pramod’s leadership, the company will be able to provide a scalable and durable logistics infrastructure to safely handle the sensitive needs of its core industries.”
GebreMariam said: “Logistics is key to support Africa’s fast economic growth and industrialization drive. Ethiopian has, therefore, partnered with DHL who has a proven expertise and experience in the logistics sector, with a view to avail the right logistics solutions in terms of cost, time and quality.
“We have had a longstanding and mutually rewarding partnership with DHL, and with this Joint venture we aim to make the country a logistics hub for Africa.”
The joint venture is another step in an extended partnership between DHL Global Forwarding and Ethiopian Airlines since 2010.
DHL Global Forwarding has been supporting the maintenance, repair, and overhaul (MRO) operations of Ethiopian Airlines’ commercial segment.
