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Completion of Ethiopia to Djibouti rail project ‘a major milestone’

21st October 2016

Creamer Media Correspondent

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Ethiopia and Djibouti will this month commission a major railway project that has been touted as a game changer in facilitating trade between the two Horn of Africa neighbours.

The $3.4-billion 700 km Addis Ababa–Djibouti railway project was implemented by Chinese companies China Railway Engineering Corporation and China Civil Engineering Construction, with construction starting in 2012.

“The completion of the Addis Ababa–Djibouti railway project is a major milestone because it opens a reliable trade route for Ethiopia,” says project manager Mokenen Getachew.

For Ethiopia, the railway line is critical in increasing trade between the two counties and also enables the country to export and import goods through the Port of Djibouti.

Landlocked Ethiopia has not had a port since its former territory of Eritrea seceded in 1991. It relies on the Port of Djibouti for about 98% of its international trade.

Ethiopia sees the railway line as critical for its ambitious economic growth agenda, as it will reduce transit times for both freight and passengers. It will reduce the transit time from Addis Ababa to the Port of Djibouti to 12 hours from three days currently, as new freight trains will travel at 90 km/h, while passenger trains will travel at 120 km/h.

The inauguration of the new railway line, which comes only months after Ethiopia launched Africa’s first light rail system in its capital city, Addis Ababa, is part of efforts to attract massive foreign investment. Ethiopia also commissioned Africa’s largest industrial park earlier this year. The Hawassa Industrial Park, which was built at a cost of $250-million, houses textile and apparel manufacturers and agroprocessing companies.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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