Connection of Ethiopia-Djibouti railway to free trade zone promotes Ethiopia’s economy

ADDIS ABABA, Oct. 17 (Xinhua) — The successful connection of the Ethiopia-Djibouti railway line to Ethiopia’s Dire Dawa Free Trade Zone is set to pave the way for economic growth, the Ethio-Djibouti Standard Gauge Railway Share Company (EDR) has said.
According to the EDR, linking the free trade zone with the railway infrastructure is expected to enhance trade and commerce in the region, effectively benefiting businesses with an efficient transportation network, the state-affiliated Fana Broadcasting Corporate reported Wednesday.
Takele Uma, chief executive officer of the EDR, said the operation marks a significant milestone for railway infrastructure in the region.
“As the Ethiopia-Djibouti railway continues to expand and improve its services, it stands as a beacon of growth and opportunity in the region, reinforcing its essential role in shaping the future of Ethiopia’s economy,” Uma said.
The EDR chief noted the latest development in further streamlining the railway’s services “is a testament to our commitment to innovation and economic growth.”
Inaugurated in August 2022, the Dire Dawa Free Trade Zone is Ethiopia’s first free trade zone, located some 445 km east of the national capital of Addis Ababa. The free trade zone is situated close to ports in Djibouti, enjoying better market potential, huge cargo gravity, and suitability for multimodal transport and logistics operations.
Last month, as part of efforts to diversify and maximize the 752-km Chinese-built railway’s transportation services and its economic contribution to the two countries, the EDR began transporting livestock from central Ethiopia to ports in Djibouti.
Official data reveal that the railway had transported 680,000 passengers and 9.5 million metric tons of cargo by May 2024, with an average annual transportation revenue increase of 39 percent over the past six years.
Since 2018, the railway has developed its freight market and expanded its service offerings, including cold-chain transportation, commuter trains for villagers, and special trains for automobile transport.
In May this year, the Chinese management contractors of the Ethiopia-Djibouti standard gauge railway officially handed over the railway’s management and operation to Ethiopia and Djibouti after six years of successful operation. ■