Fleet Management System

Implementing Partner

Djibouti Port Community System (DPCS) and Djibouti Ports, Corridor and Roads (DPCR)

Implementation Period

Jan 2022- Dec 2025

Project Participants

Transporters and Transport Regulatory Institutions

Project Value

$ 900,000

Project Rationale

Ethiopia imports 2.7 million tonnes of fertiliser and 1.7 million tonnes of wheat between September and June each year; this is in addition to the other types of goods already being transported throughout the year. Considered a high season, the increased volumes demand an additional 3,500 (approx.) trucks to be deployed as a complement to the 15000 trucks that already ply the route.

Yet, each year, there is a supply-demand disconnect that emerges from known cause effects, and resultantly multi-pronged challenges that delay delivery of goods. First, there is no fleet management system in existence; therefore, the Government of Ethiopia is unable to plan truck allocation that can inform industry players on the gaps for supply. Lack of information to the industry results in a shortage of trucks. The ensuing confusion and delays are far reaching, especially for humanitarian cargo and critical agricultural inputs, which in turn affect production in agriculture dependent Ethiopia.

Industry players estimate that 4000 trucks ply the Djibouti Corridor daily, but there is no official government figure to confirm this number. Yet the number is critical to inform potential investors in the logistics sector, as well as inform the coordination and supervision of trucks on the corridor. The ripple effect is increased delays and higher costs to move goods between Djibouti port and Addis Ababa, Ethiopia’s capital.

The proposed fleet management system will provide a platform for supervision, management and planning of the logistics sector and critically trucks plying the Djibouti Corridor. This will in turn improve productivity and efficiency in delivery of critical supplies while at the same time embedding effective coordination, which will lead to minimal disruptions in the transport of goods to and from the port of Djibouti.

Implementation Strategy

1. Feasibility study to understand dynamics of transportation activities on the Djibouti Corridor.
2. Development of feasible technological options that should be deployed to track and identify truck turnaround times, so as to quickly reallocate empty trucks. The technological solution will pinpoint location of empty trucks therefore providing data for decision making to authorities who can then effectively plan, manage and coordinate fleets on the Djibouti Corridor.