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Home Economy

Ethiopia-Djibouti Railway: A Catalyst for Enhanced Trade and Logistics

by SAT Reporter
March 17, 2025
in Economy
0
Ethiopia-Djibouti Railway: A Catalyst for Enhanced Trade and Logistics

The 752-kilometre electrified Ethiopia-Djibouti railway, constructed by Chinese enterprises, has significantly bolstered Ethiopia’s logistics sector, serving as a vital conduit for the nation’s import-export activities. Operational since January 2018, this railway has markedly improved service speed and reliability, thereby contributing to the socio-economic advancement of both Ethiopia and Djibouti.

In a recent assembly with stakeholders from Ethiopia’s transport and logistics sectors, Alemu Sime, the Ethiopian Minister of Transport and Logistics, underscored the country’s dedication to modernising its transport infrastructure to transform import-export trade. He emphasised the necessity of enhancing the efficiency and accessibility of transport and logistics services, particularly focusing on the railway network.

Takele Uma, Chief Executive Officer of the Ethio-Djibouti Standard Gauge Railway Share Company (EDR), highlighted the railway’s critical role in facilitating trade. He described it as a “crucial artery for our trade,” enhancing the smoothness, speed, and efficiency of inland-to-overseas commerce. EDR has introduced a platform connecting exporters and importers with integrated logistics solutions, encompassing inland shipping to Djibouti’s ports and international destinations. The company’s new services include multinational operations, freight forwarding, customs clearance, and documentation services.

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Since its inauguration, the railway has diversified its freight market and expanded service offerings. These include high-quality services such as cold-chain transportation, commuter trains for local communities, and specialised trains for automobile transport. These developments have positioned the railway as a preferred mode of transport for businesses engaged in import-export trade, thereby strengthening the logistics sector and trade efficiency between Ethiopia and Djibouti.

Tags: cold-chain transportationDjiboutiEthio-Djibouti Standard Gauge Railway Share CompanyEthiopiafreight servicesimport-export tradeLogisticsrailwaysocio-economic developmenttransport infrastructure
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