Agreement signed with VOLVO International

Saudi Star Agricultural Development Plc., the newly established member of MIDROC Ethiopia Group, engaged in the production of food grains mainly rice, oilseeds and sugar, signed a major undertaking, with VOLVO International for the purchase of 2,000 VOLVO trucks for use in the Derba Transport Company under establishment.  The agreement which is a US $ 142 million deal was signed between Ato Haile Asegedie, Director General of MIDROC Derba Cement Plc. and Mr. Stephan Tilk, Area Director of VOLVO International for Northern Africa and the Middle East on January 14, 2010 at Sheraton Addis.  500 trucks are expected to get into the country very soon while the rest of the fleet will arrive in the coming year.  The payment for the first 1,000 trucks has already been settled.

According to the Area Director, Mr. Stefan Tilk, this is the largest deal VOLVO International has ever made in Africa.

The Company, Derba Transport Plc., is mainly set up to provide transport services to MIDROC Derba Cement Plc. and Saudi Star Agricultural Development Plc.

The main objectives of establishing the Transport Company, according to Ato Haile Asegedie,  is to facilitate the transportation of the produce from the farms to the port and to the local market.  It will also enable MIDROC Derba Cement Plc. to provide door to door services to consumers.  He disclosed that 55% of the agricultural products are for export while the rest 45% is for local market.

Since VOLVO is represented in Ethiopia by Equatorial Business Group Plc. (EBG), an affiliate of MIDROC Ethiopia, Mr. Stefan Tilk said that experts from VOLVO International would arrive in Addis Ababa in the coming three to four months to provide technical assistance for upgrading the capacity and capability of EBG in the delivery of maintenance services.

A three to ten years contract for maintenance and spare parts has been arranged with EBG by VOLVO International. 

There are currently 3,000 VOLVO trucks on Ethiopian roads, and the arrival of the new trucks would be a major boost to the existing fleet of VOLVO transporters in the country. 

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