Ethiopian Airlines and DHL Global Forwarding have signed a new agreement to form a joint venture company called DHL-Ethiopian Airlines Logistics Services Ltd.
According to Ethiopian and DHL, the new JV will be based in Ethiopia and will provide cargo and logistics services on the entire continent of Africa.
Ethiopian Airlines will assume a majority stake in the JV and 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.
“Logistics is key to support Africa’s fast economic growth and industrialization drive,” said Tewolde GebreMariam [left in photo], group CEO of the Ethiopian Airlines Group. “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.”
Pramod Bagalwadi, a DHL veteran with over 20 years of experience in management roles within the logistics industry, has been appointed to lead the new organization. Bagalwadi currently leads the industrial projects team at DHL in Sub-Saharan Africa and a strategic business partner for the company in the region.
“With its GDP growth, Africa is stepping into the spotlight as a production hub,” said Amadou Diallo [right in photo], CEO of DHL Global Forwarding Middle East and Africa. “Recent moves to open up the economy will continue to boost Ethiopia’s position as the fastest-growing economy in Africa, and under Pramod’s leadership, the company will be able to provide a scalable and durable logistics infrastructure to safely handle the sensitive needs of its core industries.”
DHL Global Forwarding has been supporting the maintenance, repair and overhaul operations of Ethiopian Airlines’ commercial segment since 2010, providing end-to-end logistics solutions for aircraft parts, engines and mechanical modules.