### **Expanded Distribution & Supply Chain Strategy**
Boaz Trading PLC’s supply chain is designed to overcome Ethiopia’s logistical challenges while ensuring cost efficiency, reliability, and scalability. Below is a detailed breakdown of the import logistics, storage infrastructure, and last-mile delivery network:
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#### **1. Import Logistics: Djibouti Port to Addis Ababa**
**A. Maritime Shipping Routes**
- **Primary Route**:
- **Russian Ports**: Novorossiysk (Black Sea) and Ust-Luga (Baltic Sea).
- **Transit**: Via Suez Canal to Djibouti Port (14–18 days).
- **Backup Routes**:
- UAE (Ruwais Refinery) → Djibouti (10 days).
- India (Jamnagar Refinery) → Djibouti (7 days).
**B. Djibouti Port Operations**
- **Partnerships**:
- Priority berthing rights via a $500,000 annual agreement with Djibouti Port Authority, reducing unloading time from 7 to 3 days.
- Dedicated storage tanks (20,000 cubic meters) at Doraleh Terminal for buffer stock.
- **Compliance**:
- Pre-clearance of Ethiopian Energy Authority permits to avoid delays.
- Third-party quality checks (e.g., SGS Group) at port to verify fuel specifications.
**C. Inland Transport**
- **Rail Freight**:
- 80% of shipments moved via Ethio-Djibouti Railway (cost: $0.10/liter vs. trucking’s $0.18/liter).
- Partnership with Ethiopian Shipping & Logistics Services Enterprise (ESLSE) for dedicated weekly trains.
- **Trucking Backup**:
- Reserved fleet of 50 tanker trucks (30,000-liter capacity) for urgent or overflow shipments.
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#### **2. Storage Infrastructure**
- **Addis Ababa Hub**:
- **Capacity**: 50,000 cubic meters across 3 warehouses (Bole, Akaki, Kaliti).
- **Security**: 24/7 surveillance and fire suppression systems compliant with NFPA standards.
- **Regional Depots**:
- **Dire Dawa**: 10,000 cubic meters for servicing eastern Ethiopia (e.g., Harar, Jijiga).
- **Hawassa**: 5,000 cubic meters for industrial park demand.
- **Technology**:
- IoT sensors for real-time inventory tracking.
- AI-driven demand forecasting to optimize stock levels.
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#### **3. Last-Mile Delivery**
**A. Partner Network**
- **Local Trucking Companies**:
- **Ethio-Djibouti Transport Share Company**: 100+ tankers for bulk industrial deliveries.
- **Shegole Transport**: Specializes in rural routes with all-terrain vehicles.
- **Contracts**:
- Performance-based incentives (e.g., $500 bonus for on-time deliveries 95% of the month).
- Penalties for delays (>24 hours = 5% fee reduction).
**B. Delivery Models**
- **Bulk Industrial Clients**:
- Just-in-Time (JIT) delivery with 12-hour advance notice.
- Customized schedules (e.g., overnight deliveries for factories).
- **Retail Fuel Stations**:
- Weekly replenishment cycles using 10,000-liter tankers.
- Emergency refueling service (+20% fee) for stations facing stockouts.
- **Households**:
- Mobile fuel trucks serving Addis Ababa suburbs (e.g., Bole Bulbula, Saris) with 5-liter jerry cans.
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#### **4. Risk Mitigation**
- **Buffer Stock**: 45-day inventory (15 days at Djibouti Port + 30 days in Addis Ababa).
- **Currency Hedging**: 70% of USD-denominated costs locked via 6-month forward contracts.
- **Supplier Diversification**: 60% Russian imports, 30% UAE, 10% India to avoid over-reliance.
- **Political Risk Insurance**: Coverage via African Trade Insurance Agency (ATI) for supply chain disruptions.
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#### **5. Technology Integration**
- **Blockchain Tracking**: End-to-end visibility from Russian refineries to end-users, reducing fraud.
- **GPS Fleet Management**: Real-time monitoring of trucks via platforms like *Samsara*.
- **Automated Replenishment**: Fuel stations receive AI-prompted orders when stock hits 20%.
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#### **6. Sustainability Initiatives**
- **Green Logistics**:
- Pilot electric trucks (5 vehicles) in Addis Ababa by 2025, powered by Ethiopia’s hydropower grid.
- Solar-powered warehouses (Hawassa depot runs 100% on solar).
- **Carbon Offsets**: Partner with *Green Ethiopia* to plant 10,000 trees annually in the Rift Valley.
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#### **7. Competitive Advantage**
| **Factor** | **Boaz** | **NOC** | **TotalEnergies** |
|--------------------------|-----------------------------------|-----------------------------|----------------------------|
| **Delivery Speed** | 72-hour turnaround | 7–10 days | 5 days |
| **Cost per Liter** | $0.10 (rail) / $0.18 (road) | $0.22 (road only) | $0.20 (road) |
| **Inventory Tech** | AI forecasting + IoT | Manual tracking | Basic ERP systems |
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#### **8. Future Expansion**
- **Berbera Port (Somaliland)**: Negotiate access to diversify from Djibouti (lower fees, less congestion).
- **Ethiopian Dry Ports**: Develop storage hubs in Modjo and Mekelle to cut last-mile costs.
- **Drone Delivery Pilot**: Test unmanned aerial vehicles for rural household LPG deliveries.
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### **Conclusion**
Boaz Trading’s supply chain combines **strategic partnerships**, **technology-driven agility**, and **risk resilience** to dominate Ethiopia’s fuel distribution landscape. By prioritizing cost efficiency, speed, and sustainability, the company is poised to meet growing demand while outperforming competitors like NOC and TotalEnergies.