By: Ethio Negarit

Ethiopian Shipping and Logistics (ESL) generated 157.2 billion birr in revenue during the 2025/26 fiscal year, exceeding its annual target despite major disruptions caused by conflict in the Middle East, Red Sea security tensions, and fuel shortages.

Speaking at the institution’s annual performance review, ESL Chief Executive Officer Engineer Abdulber Shemsu described the past fiscal year as one of the most challenging for the maritime and logistics industry.

Nevertheless, he said the state-owned enterprise surpassed its performance targets across several key indicators.

ESL transported more than 7 million metric tons of cargo during the fiscal year, including 5 million metric tons of bulk cargo and 2 million metric tons of containerized freight.

The company’s fleet of 10 vessels carried about 1.1 million metric tons of cargo, while the remaining shipments were transported through chartered vessels and partner shipping lines.

The institution also handled the transport of 2 million metric tons of imported fertilizer, one of its core responsibilities. Of the fertilizer arriving through the Port of Djibouti, 26 percent was transported via the Ethio-Djibouti Railway, while 74 percent was delivered by road.

To facilitate cargo movement, ESL operated its own fleet of 10 vessels, chartered 47 additional ships, and worked with seven international shipping lines.

On land, the company deployed 665 company-owned trucks and 3,643 contracted trucks to transport cargo from the Port of Djibouti to dry ports and destinations across Ethiopia.

The company reported 28.2 billion birr in pre-tax profit, while total revenue reached 157.2 billion birr, exceeding its annual target of 144.9 billion birr by 8.5 percent.

Despite the strong financial performance, Abdulber said regional instability continued to disrupt operations. He cited the conflict in the Middle East, insecurity in the Red Sea, and fuel shortages as major factors affecting both maritime transport and inland logistics.

He also disclosed that the closure of the Strait of Hormuz for four months resulted in significant financial losses after one of the company’s vessels was stranded during the disruption.

However, he said the vessel, its crew, and its cargo remained unharmed.

Looking ahead, ESL plans to acquire 16 new vessels over the next five years to expand its fleet and strengthen Ethiopia’s maritime transport capacity.

Although the company had planned to purchase the first six ships during the current fiscal year, Abdulber said the procurement process has been delayed by a number of challenges.

He added that preparatory work is underway and expressed confidence that all 16 vessels will be acquired within the planned timeframe.