Ethiopian Cargo’s Smart Logistics Hub: Pioneering Future of Africa’s Cargo Exports through Visionary Steps
As the African continent continues to seek rapid and sustainable economic growth, the need for robust, efficient, and smart cargo logistics infrastructure has never been more pressing.
Ethiopian Cargo and Logistics Services, a subsidiary of Ethiopian Airlines, Africa’s leading aviation group, has risen to the challenge with its state-of-the-art Smart Logistics Hub that signals a new chapter in its storied history, positioning itself as the cornerstone of the continent’s future in logistics, trade, and economic development.
Located at Addis Ababa Bole International Airport, the hub is designed to meet the increasing demand for high-quality logistics services within Africa and beyond.
This move is in line with Ethiopia’s ambitious Growth and Transformation Plan (GTP), which seeks to transform the country into a middle-income economy by the 2050.
At the 4th CHINET AviaCargo Conference held in Lagos recently, Leul Adefa Wondimu, the Cargo Manager of Ethiopian Airlines in Nigeria, presented an ambitious vision behind the SMART Logistics Hub for the future of cargo logistics in Africa.
In a detailed presentation titled “Creating African SMART Logistics Hub,” Wondimu outlined the crucial role that an advanced logistics hub could play in transforming trade, reducing costs, and supporting economic growth across the continent.
Wondimu emphasised the pressing need for a smart logistics hub to bolster intra-African trade, which remains relatively low compared to other regions, arguing that by streamlining the movement of goods across borders, a smart logistics hub could significantly reduce transit times and costs, thereby enhancing trade efficiency among African nations.
He added that the hub would enable African countries to compete more effectively in global markets, particularly in key sectors like agriculture, mining, and manufacturing.
In his presentation, Wondimu identified the high logistics costs in Africa, driven by inefficient infrastructure and complex regulations, as a major barrier to economic development.
He disclosed that the Ethiopian smart logistics hub is integrated with advanced technologies for optimising routes, reducing delays, and lowering these costs significantly.
The aim is to support the continent’s push towards industrialisation by ensuring the timely and efficient delivery of raw materials and finished goods.
The rapid growth of the e-commerce sector in Africa, driven by increasing internet penetration and a young, tech-savvy population, was another key area of focus.
Wondimu noted that the smart logistics hub would be essential in handling the high volume of small, fast deliveries required by e-commerce businesses.
Additionally, the hub’s strategic location in Addis Ababa places it at the heart of the continent, allowing it to serve as a central node for intra-African trade.
This is particularly important as Africa gears up for the implementation of the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services, facilitating trade and investment across the continent.
Wondimu underscored the importance of leveraging technology, such as IoT, AI, and data analytics, within the smart logistics hub to enhance the reliability and efficiency of supply chains, noting that real-time tracking of shipments, predictive maintenance, and data-driven decision-making are critical components of this technology-driven approach.
He also highlighted the potential of the smart logistics hub to position Africa as a key player in global logistics, by acting as a gateway for goods moving between emerging markets in Asia, Latin America, and Europe, and attracting foreign investment through modern and efficient logistics infrastructure, Africa could significantly boost its role in the global economy.
Wondimu elaborated on the concept of Ethiopian Cargo’s state-of-the-art infrastructure, including a cargo terminal and a 15,000-squaremetre facility dedicated for mail, courier and e-commerce, handling 150,000 tons per year and 23 million packages per annum, which includes a wide range of products, such as temperature-sensitive pharmaceuticals, fresh horticulture produce, live animals, express parcels, and dangerous goods.
He introduced the four pillars of the SMART hub: Life Science & Pharma Hub, e-Commerce Hub, Advanced Logistics Solutions, and Contemporary Freight Hub. Each pillar focuses on different aspects of logistics, from expanding partnerships and increasing traffic in the pharma sector to developing major product lines like live animals, express, perishables, and vulnerable goods.
He also emphasised the importance of product diversification, particularly in the Pharma Wing, which is witnessing growing demand for healthcare logistics.
As part of its strategy, Ethiopian Cargo aims to shift from sea freight to air freight for its reliability and speed, especially in handling time-sensitive shipments.
Wondimu noted that Ethiopian Cargo’s commitment to operational excellence was evident in its pursuit of various IATA certifications, including CEIV (Center of Excellence for Independent Validators) Pharma, CEIV Live Animals, CEIV Lithium, and CEIV Fresh.
These certifications would ensure that the airline meets the highest international standards for safe and efficient cargo transportation.
Wondimu also outlined Ethiopian Cargo’s extensive network and regional hubs across Africa, Europe, North America, China, Asia, and Latin America with a total fleet of 148 aircraft, including 16 dedicated freighters – 10 B777-200f, 2 B767f and 4 B737-800f.
Ethiopian Cargo also serves 70 dedicated cargo destinations globally, making it a major player in the international logistics arena.
