DHL Global Forwarding signs Joint Venture with Ethiopian Airlines
With this partnership, DHL Global Forwarding is the first global forwarder to establish a local presence in Ethiopia.
- DHL Global Forwarding becomes first international forwarder with local presence in Ethiopia
- Partnership will enhance Ethiopia's logistics infrastructure and international trade connections
Bonn - DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, and Ethiopian Airlines, the largest aviation group in Africa, have signed on July 26 a new 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. With this partnership, DHL Global Forwarding is the first global forwarder to establish a local presence in Ethiopia.
"DHL Global Forwarding is an important enabler of global trade. By bundling our global network expertise with Ethiopian Airline's profound knowledge of the regulatory and operational environment, we are opening up an important access to international trade for Africa's fastest growing economy and at the same time strengthening our position in the African continent," said Tim Scharwath, CEO DHL Global Forwarding.
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 organization. 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.
Joint Venture formed by long-time partners to leverage growth
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 industrialization drive. Ethiopian has, therefore, partnered with DHL who has a proven expertise and experience in the logistics sector, with a view to avail the right logistics solutions in terms of cost, time and quality. We have had 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.
The joint venture will provide much-needed freight capacity and logistics infrastructure to Ethiopia, where soaring economic growth has rapidly driven up demand for international forwarding and handling services.