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Djibouti Port Risks Congestion From Ethiopian Steel Imports

Djibouti Port Risks Congestion From Ethiopian Steel Imports

From AllAfrica. Djibouti Port Risks Congestion From Ethiopian Steel Imports

Up to 200,000tn of steel that Ethiopia imported within the last three months through the Port of Djibouti is yet to be retrieved by importers, which could lead to congestion, Fortune learnt.

Most of the steel, 180,000tn of which belongs to private importers, failed to be picked up because of financial problems encountered by importers, according to the Ethiopian Shipping & Logistics Services Enterprise (ESLSE).

The goods were imported through a uni-modal arrangement, where once the goods arrive at the port, importers are responsible for handling the paperwork and transportation into the country.

Though officials from the two countries are discussing the issue, they have disagreements on its seriousness.

While officials from the Enterprise are pushing importers to collect their steel ‘soon’, officials at the Port are insisting that not only is it not in danger of congestion, but that it has the capacity to handle even more steel.

“Congestion happened for the last time in October 2012 and we sorted it out,” said Aboubaker Omar, chairperson of the Djibouti Ports & Free Zones Authority. “The issue of congestion does not worry us.”

Written by Bewket Abebe | Read more at AllAfrica