Ethiopia-Djibouti Railway Pledges to Reshape Trade Dynamics, Foster Regional Development

Source: Xinhua Editor 

huaxia2025-05-07 16:55:15   

This photo taken on May 10, 2024, shows a train at Lebu Railway Station in Addis Ababa, Ethiopia. (Xinhua/Liu Fangqiang)

The Ethio-Djibouti Standard Gauge Railway Share Company (EDR) has reaffirmed its strong commitment to expanding the role of the Chinese-built railway as a "crucial artery of trade and connectivity" between the two countries, aiming to boost logistics efficiency and spur regional economic growth.  

ADDIS ABABA, May 7 (Xinhua) -- The Ethio-Djibouti Standard Gauge Railway Share Company (EDR) has reaffirmed its strong commitment to expanding the role of the Chinese-built railway as a "crucial artery of trade and connectivity" between the two countries, aiming to boost logistics efficiency and spur regional economic growth.

In a response to Xinhua, the EDR outlined plans to raise the 752-km electrified railway's annual freight capacity from the current two million tonnes to 6.2 million tonnes by 2027. Ultimately, the railway aims to handle at least 25 percent of Ethiopia's total import and export trade.

Touting the railway's growing strategic importance, the EDR said its operations are anchored in value-added services such as multimodal transport, freight forwarding, warehousing, customs clearance, and passenger services, helping reshape logistics between Ethiopia and Djibouti.

"The railway has significantly improved Ethiopia's import-export trade by providing a reliable and efficient transportation corridor to the port of Djibouti. It has streamlined logistics, reduced transportation time and costs, ultimately increasing trade competitiveness," it said.

Data from the EDR suggested that the railway has slashed freight transport time between the two countries from more than three days to under 18 hours.

According to the EDR, the railway's ability to "seamlessly connect major cities, industrial parks, and key economic zones in Ethiopia and Djibouti" has enabled the efficient movement of cargo and passengers. Its electrified system offers a cost-effective and environmentally sustainable alternative to road transport.

The EDR also highlighted the railway's broader socio-economic benefits, including job creation, stimulation of local economies along the route as well as its role in strengthening people-to-people ties and fostering cultural exchanges between Ethiopia and Djibouti.

As part of its "ambitious yet achievable" five-year growth plan, the EDR aims to increase its annual cargo capacity from the current 2.09 million tonnes to 10.1 million tonnes and passenger numbers from around 180,000 to over 560,000, while improving its net profit margin by 38.2 percent.

The railway is implementing a multifaceted strategy involving infrastructure expansion, enhancement of its rolling stock, digitalization of logistics operations, and diversification of services. With newly added capabilities such as multinational operations, customs clearance, and freight documentation, the EDR is also working to deepen partnerships and attract new clients.

By offering "end-to-end comprehensive services," the EDR said it is positioning itself as a regional logistics leader. Its growing role, the company emphasized, is helping to reshape trade dynamics and lay the groundwork for sustainable regional development.

Jointly constructed by China Railway Engineering Corporation and China Civil Engineering Construction Corporation, the 752-km standard-gauge railway, also known as the Addis Ababa-Djibouti Railway, is Africa's first electrified transboundary rail line.