The Ethio-Djibouti Railway Transport Joint Stock Company has announced a significant milestone, reporting earnings surpassing 2.4 billion birr from passenger and freight services over the past nine months.
Spearheading transportation operations, the association accommodates an impressive daily average of 700 to 1000 passengers.
Abdi Zenebe, the CEO of the association, proudly proclaimed that the company achieved 98 percent of its outlined objectives by facilitating the transportation of over 155,000 travelers and 1.4 million tons of cargo during this period.
Ethiopia assumed the responsibility of managing the association from January 2024, underscoring its commitment to bolstering transportation infrastructure and economic growth.
Abdi Zenebe elucidated plans to enhance rail transport efficacy by cultivating a conducive operational environment.
Collaborating with pertinent stakeholders, the association aims to augment its capacity for handling increased transportation demands and revenue generation over the next three years.
Highlighting the pivotal role of the Ethio-Djibouti railway system in Ethiopia’s economic trajectory, Zenebe emphasized the operation of over 1,000 trains delivering diverse services.
Not only does this contribute significantly to Ethiopia’s economic vitality, but it also fosters political, economic, and social cohesion by fostering bilateral connections between the citizens of Ethiopia and Djibouti, He added.
Officially inaugurated in 2016, the Ethio-Djibouti railway line has emerged as a critical artery for passenger and freight transit since January 2018, covering a sprawling 752-kilometer stretch.
The railway project, with a total cost of $3.4 billion, has been predominantly funded through a 70 percent loan from the Chinese government, with the remaining 30 percent financed by the Ethiopian government.
In August 2023, the World Bank extended financial assistance totaling $730 million for the Ethio-Djibouti railway line.
This funding, allocated under the African Regional Economic Corridor Project (Ethio-Djibouti Corridor Project), is poised to fortify Ethiopia’s logistical and communication infrastructure, particularly along the strategic Addis Ababa-Djibouti corridor, which facilitates 90 percent of Ethiopia’s maritime trade.
As part of the project’s broader scope, the Ministry of Finance and the World Bank inked a support agreement earmarking funds for the construction of the Meoso-Dredawa road.
This initiative aims to bolster transportation efficiency and capacity, thereby catalyzing socioeconomic development in the regions traversed by the road.
Additionally, the project extends support to vital sectors such as healthcare, water supply, and education, benefiting communities situated along the transportation route.
