Modjo Green Logistics Center to double its size with massive expansion

Addis Ababa, Jun6 6, 2024 (FBC) – In a significant move to bolster Ethiopia’s logistics capabilities, the Modjo Green Logistics Centre  in Ethiopia is undergoing a massive expansion to doubling its size and significantly increases its container handling capacity.

The ambitious project, spearheaded by the Ethiopian Shipping and Logistics Services Enterprise, aims to transform the facility into a world-class logistics hub.

According to Mehereteab Teklu, Deputy CEO of the Enterprise, the expansion is a two-pronged effort, funded through the Enterprise’s budget and a loan agreement with the World Bank. The Enterprise’s investment focuses on expanding warehouses, terminals, and overall service delivery.

“So far, up until recently, we have carried out expansion works costing over 3 billion birr. We have more than eight large mega warehouses. The area of each warehouse is 5,400 square meters, which is the size of a stadium. As a result, the problem of shortage in warehouse service has been solved. Our terminals have the capacity to handle up to 20,000 TEU containers in parallel at a time,” Mehereteab Teklu stated.

Eight new large warehouses, spanning 5,400 square meters each, have already been constructed, addressing the previous shortage of warehouse space and enhancing the terminals’ container handling capabilities, he said.

This phase of the expansion has tackled a long-standing challenge and laid the groundwork for improved efficiency.

The World Bank loan agreement, on the other hand, is facilitating the construction of additional infrastructure, including a state-of-the-art cold storage warehouse designed to support the export of perishable food products, as well as other essential facilities.

“In the future, we will be able to provide other services as well. One is cold logistics. One of the things needed to export perishable items like meat, fruits, and foods is a cold storage warehouse.”

According to the Deputy CEO, when the cold logistics facility is built, it will be the first of its kind in the history of Ethiopian ports and terminals.

The construction of this cold terminal is expected to be completed within nine months with support from the World Bank. There will also be additional warehouses, Mehereteab added.

Currently operating on an 86-hectare land area, the Modjo Dry Port Logistics Center, is set to expand its footprint to over 162 hectares upon completion of the expansion project.

This significant increase in size will not only provide ample space for warehousing and container handling but will also position the facility as a vital cog in Ethiopia’s industrial park economy, he explained.

“We will be able to handle up to 750,000 containers in paralal per year. Once our expansion project is completed, we will be able to handle over a million containers per year. Not only capacity building, but we also aim to make our services modern, efficient, accessible and cost-effective,” he emphasized, highlighting the expansion’s impact on the port’s overall capacity and service quality.