Designed to become the main link in Ethiopia's supply chain via Djibouti, the railroad is gradually making its mark in a system still dominated by road, which still accounts for 85% of annual import and export volumes.

The railroad between Ethiopia and Djibouti closed 2023 with 2.1 million tons of freight transported, compared with 885,000 tons in 2018 when it went into operation. This progress is enabling the Ethio Djibouti Railway Company to increase its revenues, and to expect net sales of 4.5 billion birrs this year, compared with 738 million in 2018.

According to EDR, the network now carries around 15% of the country's total import-export freight, compared with 8.5% in 2018. The network operator recently announced an investment program to increase the service's capacity in order to carry 4 million tonnes each year.

Built jointly by China Railway Group Limited (CREC) and China Civil Engineering Construction Corporation (CCECC) at a total cost of USD 3.4 billion, the Ethiopia-Djibouti rail network is an essential supply channel for Ethiopia, a landlocked country that relies on the Djibouti port of Doraleh for supplies and sales to the rest of the world.

These lines carry a variety of cargoes, including perishable goods, vehicles, grain, fertilizers, etc.

Agence Ecofin