DHL Global Forwarding gains a strategic foothold in Ethiopia

A joint venture with Ethiopian Airlines is aimed to become Africa’s leading logistics provider and enhance Ethiopia’s logistics infrastructure

DHL Global Forwarding gains a strategic foothold in Ethiopia

DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, is the first global forwarder to establish a local presence in Ethiopia: on July 26th, Amadou Diallo, CEO von DHL Global Forwarding Middle East and Africa, and Tewolde GebreMariam, Group CEO, Ethiopian Airlines Group, the largest aviation group in Africa, have signed an agreement to form a joint venture company – DHL-Ethiopian Airlines Logistics Services Ltd. – to build the Leading Cargo Logistics provider JV Company in Africa. The company will be based in Ethiopia and do business in the entire continent of Africa, enhancing Ethiopia’s logistics infrastructure and connections.

Ethiopian Airlines, which assumes a majority stake in this 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. 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 organisation. This will be an additional portfolio for Bagalwadi, who currently leads the Industrial Projects Team for DHL in Sub-Saharan Africa and a strategic business partner for the company in the region.

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, extending various solutions on end-to-end  Logistics Services  for aircraft parts, engines and mechanical modules to textile, utensils, food and beverages – via air and ocean freight between Europe and Asia.

“Logistics is key to support Africa’s fast economic growth and industrialisation drive. Ethiopian has a longstanding and mutually rewarding partnership with DHL, and with this JV we aim to make the country a logistics hub for Africa,” said Tewolde GebreMariam, Group CEO, Ethiopian Airlines Group.

DHL’s portfolio of logistics services is ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 360,000 employees in more than 220 countries and territories worldwide, DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than EUR 60 billion in 2017.

Ethiopian Airlines is the fastest growing Airline in Africa. In its seventy plus years of operation, Ethiopian has become one of the continent’s leading carriers. Ethiopian is calling more than 100 international passenger and cargo destinations across five continents. Ethiopian’s fleet includes modern and environmentally friendly aircraft such as Airbus A350, Boeing 787-8, Boeing 787-9, Boeing 777-300ER, Boeing 777-200LR, Boeing 777-200 Freighter, Bombardier Q-400 double cabin with an average fleet age of five years. Ethiopian is currently implementing a 15-year strategic plan called Vision 2025 that will see it become the leading aviation group in Africa. The airline was registering an average growth of 25% in the past seven years.,