Ethiopian Aviation Holding Group has signed an agreement with DHL Global Forwarding over the formation of a new joint-venture company, DHL-Ethiopian Airlines Logistics Services Ltd.
The company will be based in Ethiopia and will aim to become Africa's leading cargo logistics provider where, in light of the continent's rapid economic growth, the need for international forwarding and handling services has soared.
Ethiopian Airlines will have a majority stake in the firm and will provide regulatory and operational support while DHL Global Forwarding will oversee air, ocean, and road freight connections between Ethiopia’s main trade hubs and the rest of the world.
DHL veteran Pramod Bagalwadi will lead the venture in addition to overseeing the Industrial Projects Team for DHL in Sub-Saharan Africa and a strategic business partner in the region.
“Logistics is key to support Africa’s fast economic growth and industrialization drive," Tewolde GebreMariam, CEO, Ethiopian Airlines Group, said. "Ethiopian has, therefore, partnered with DHL, which 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."
Since 2010, DHL Global Forwarding has been supporting the commercial segment of Ethiopian Airlines' MRO operations.
