The Chinese prominent brand, Jinan Sinotruk heavy duty trucks dominate the collection of Ethiopian Shipping and Logistics Services Enterprises’ (ESLSE) inland transport arm.
The public logistics enterprise board has approved the award for the procurement of 185 units of 6×4 track tractors with 3 axle cargo semi-trailer for Yemkab General Import and Export plc and Sinotruk International co. ltd.
Capital previously reported that the refloated bid which opened in April had attracted about six global manufacturers from the 32 who bought the bid document.
A preliminary evaluation of bidders has been conducted which led the two companies to pass for technical evaluation which was followed by financial document assessments.
According to the process, as per the technical team evaluation, one company of the two reached the next step, which is the financial assessment, and based on the final approval by the relevant higher body, it is going to provide the trucks.
The information Capital obtained from Wondimu Denbu, Deputy CEO for Corporate Service at ESLSE, said that the award was given at the unit price of USD 78, 755.
“The total cost of the 185 trucks is about USD 14.56 million,” he added.
The Deputy CEO said that the brand new trucks will be transported in four months time.
Besides the 185 trucks, the procurement of feed kits, recommended spare parts, and diagnostics laptops and software have been concluded at the cost of USD 665,123.
On its failed float, ESLSE had tried to buy the trucks on a differed letter of credit (LC) scheme, while it only managed to attract the Chinese company.
When the logistics firm refloated for the second time in March and opened the bid on April 8, the enterprise invited bidders to submit their offer on both; normal procurement procedure and or deferred LC alternatives.
“The latest bid was conducted under the direct LC,” the Deputy CEO disclosed.
Sinotruck International Co, which is known for its heavy-duty trucks, Sinotrucks, was the company that won last year’s bid to supply 150 Sinotruck vehicles at the cost of 11 USD million.
Besides that, 38 trucks have been directly bought from the Chinese manufacturer at the cost of the same winning price of last year’s bid and are now under ESLSE’s operation. According to the country procurement rule, the enterprise has a right to conduct up to 25 percent additional direct purchase from the bid winning supplier, “that is the advantage we capitalized on so as to procure additional 38 trucks, besides the 150 Sino trucks, which are already in operation,” officials of ESLSE recently told Capital. Based on the latest award the number of Sinotruk brands surpasses the collection of ESLSE’s inland fleets over the French prominent product, Renault Trucks.
The 215 Renault trucks that ESLSE has been operating have been in service for the last five years.
Currently, the logistics giant is administering about 450 heavy-duty trucks that are mainly in cargo operation in routes to ports in Djibouti.
Wondimu said that the incoming brand new heavy duty trucks will help the enterprise to improve its service and replace the old ones.
On the latest bid, ESLSE has also invested interested manufacturers to express their interest for the supply of 17 unit of 4X2 truck tractor, while no one has shown interest thus far.
Wondimu said that the bid for the truck tractors will help the logistics firm to operate its semi-trailer and will be refloated soon.