According to a recent report by the National Logistics Transformation Council (NLTC), the recently inaugurated highway connecting Ethiopia and Kenya is expected to give Ethiopia leverage in port service negotiations with neighbouring countries.
The 500-kilometer road, which was inaugurated on December 9th by officials from both nations, is part of the Trans-African Highway Project. The road is expected to bolster trade, investment, and socialization between Ethiopia and Kenya as it dramatically reduces transport time between the two.
Temesgen Yehune, a logistics expert at the NLTC, says that officials like him expect the road to also give Ethiopia a strong negotiating position when it comes to port services.
Ethiopia is going to gain access to the Lamu Port-South Sudan-Ethiopia transport corridor due to the road. The corridor is projected to accommodate at least 32 ships at a time and is expected to facilitate Ethiopia’s import-export activity in the southern region of the nation.
Temesgen and other officials at the NLTC expect port tariffs to be the most significantly affected section of trade due to the road. Furthermore, besides cementing Ethiopia’s position in the region, the road is also expected to serve as a major corridor for export to the world market. Temesgen notes that the road is especially going to be convenient to access villages located in the Hawassa, Yirgalem, and Yabelo areas.