Ethiopian Shipping and Logistics (ESL) welcomed its newest and largest vessel, MV Abbay II, to its home port at Djibouti port. The Ultramax bulk carrier has a capacity of nearly 64,000 DWT and was commemorated in a ceremony attended by senior government, port, and logistics officials from Djibouti and Ethiopia.
Wondwossen Kassa (Cap), Deputy CEO for Shipping Sector at ESL, spoke at the event, recalling the challenges the company faced in the past year. He mentioned the acquisition of 9 ships in 2012/13, including two product tankers with a carrying capacity of 42,150 DWT each. These tankers were intended to transport imported petroleum products for Ethiopia but could not be used for their intended purpose. As a result, the company had to find other ways to keep them in business.
Studies conducted over the past five years suggested that continuing to operate these tankers would result in a loss. The recommended options included selling the tankers, converting them to bulk carriers, or swapping them with bulk carrier vessels. However, these measures could not be implemented due to various reasons.
In October 2021, an additional feasibility study was conducted which concluded similar findings. ESL’s management board then gave direction on four alternatives to avoid further financial loss. These included swapping the tankers with new or second-hand Ultramax or Supramax bulkers.
A technical team was formed in February 2022 and worked tirelessly for almost a year and a half to realize the plan. The process was successfully concluded with the acquisition of MV ABBAY II under the second option proposed in the recommendation.
MV ABBAY II has a DWT capacity of 63,229 and an overall length of 200 meters. It was built in 2016 by Yangzhou Dayang Shipbuilding Co. Ltd., China and was previously registered in Majuro under the flag of Marshal Islands. It was operated by Bernhard Schulte Ship management, a vessel management company based in Hamburg, Germany.
On April 25th, 2023, after finalizing all preparations and conducting an underwater inspection, the delivery procedure was concluded and the vessel was registered under the Ethiopian flag as ABBAY II. Wondwossen (Cap) stated that after 59 years in the shipping business, ESL has now entered into a new chapter of growth and opportunity.
