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    Home»Ethiopia»Restructuring Dispute Between Ministry of Transport and Freight Transport Operators in Ethiopia Escalates
    Ethiopia

    Restructuring Dispute Between Ministry of Transport and Freight Transport Operators in Ethiopia Escalates

    BRICS+ News ServicesBy BRICS+ News ServicesOctober 1, 2024No Comments2 Mins Read
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    Ministry of Transport and Logistics Locks Horns with Freight Transport Operators

    In a recent development, the Ministry of Transport and Logistics has found itself in a heated dispute with freight transport operators over a directive issued over a year ago. The directive, which aimed to restructure transport associations into share companies or private limited companies, has sparked controversy and conflict between the two parties.

    One of the key sticking points of the dispute lies in a clause mandating the gradual retirement of cross-border vehicles that have been in operation for more than 30 years. The implementation of the directive has faced challenges, leading to misunderstandings and disagreements between the ministry and transport operators.

    Abubeker Seid, operations manager of Continental Transport and General Trading, shed light on the issues faced by transport operators, noting that the requirements placed significant strain on their capacity. While efforts have been made to bring transport associations into compliance with the directive, many have failed to meet deadlines, causing further tensions.

    The directive was issued in May 2023, following the passage of the Road Transport Proclamation in 2022, which granted the Ministry the authority to regulate the freight and passenger transport sectors effectively. The goal of the directive was to modernize the transport sector, promote the adoption of high-performance vehicles, and eliminate older vehicles that pose operational challenges.

    Despite the government’s push to phase out older cross-border vehicles and restructure transport associations, there have been delays in issuing competency certificates for freight transport operators. This has led to increased demand for services, with over 1,100 applications for competency certificates being submitted daily.

    While the dispute continues, the government has taken steps to accommodate operators by extending deadlines for license renewals and ensuring smooth operations for vehicles traveling to and from Djibouti. The ongoing challenges highlight the complexities of implementing reforms in the transport sector and the need for effective communication and collaboration between stakeholders.

    As the Ministry of Transport and Logistics grapples with the repercussions of the directive, the future of the freight transport industry remains uncertain. However, efforts to address the concerns raised by operators and streamline the implementation process are crucial for ensuring the sustainability and efficiency of the sector.

    For more information on the Ministry of Transport and Logistics, visit their official website.

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