Ethiopia-Djibouti Railway Hailed For Boosting Trade And Growth

A freight train of Ethiopia-Djibouti railway is seen at the Indode Freight Station on the outskirts of Addis Ababa, Ethiopia, on Aug. 25, 2022. The Chinese-built Ethiopia-Djibouti railway on Thursday started vehicle shipment from ports in Djibouti to Addis Ababa, the Ethiopian capital. The first vehicle shipment arrived at the Indode Freight Station on the outskirts of Addis Ababa. (Xinhua/Michael Tewelde)

THE Ethiopian government has recognised the Chinese-built Ethiopia-Djibouti railway for its significant contribution to the country’s expanding export-import trade. The 752-km railway, a vital link between the two countries, has been praised for its fast-growing role in promoting socio-economic development.

The Ethio-Djibouti Standard Gauge Railway Share Company (EDR) announced that the recognition from Ethiopia’s Ministry of Transport and Logistics highlights the railway’s impact on regional trade and logistics. The EDR stated that this recognition represents a mandate to continue improving and expanding the logistics services provided by the railway.

‘We are committed to advancing the sector by further developing our manpower and expertise,’ the company added.

Takele Uma, CEO of the EDR, stressed the importance of logistics in streamlining the supply chain from port operations to customs clearance. He noted that the Ethiopia-Djibouti railway is continuously improving its operational capabilities to become more competitive both regionally and globally, offering better logistics solutions for businesses and customers.

In May, management of the railway was officially handed over from Chinese contractors to Ethiopian and Djiboutian authorities after six years of successful operation. Since its launch in 2018, the railway has made significant progress, transporting 680,000 passengers and 9.5 million metric tons of cargo by May 2024. Over the past six years, its annual transportation revenue has grown by an average of 39 percent.

The railway continues to develop its services, including freight expansion, cold-chain transportation, commuter trains for local communities, and specialised trains for automobile transport. This growing network is key to facilitating trade and improving logistics efficiency in the region.