Djibouti has inked with a Kuwaiti based firm for the construction of 98 million USD road link which will enable Ethiopia to ship its potash output. The company that reached an agreement with the Djibouti is Mohammed Abdulmohsin Al-Kharafi & Sons Co.

According to Aboubaker Omar Hadi, the chairman of Djibouti’s ports authority, the Kuwaiti firm was constructing 128 kilometers road that connects the port with the Ethiopia’s border. Ethiopia on the other hand intended to provide an 11 kilometer stretch on its side, he furthered.

The Chinese-built Tadjourah port will serve cargo ships as well as bulk carrier vessels for potash companies in northern Ethiopia, with the road to be completed in time for the start of production next year, Hadi explained.

According to Hadi Djibouti is going to charge potash exporters around 7.50 USD per metric ton handled by the new port. Ethiopia plans to export an annual 74,000 tons of the mineral by 2019, according to the nation’s five year plan it dubbed Growth and Transformation Plan (GTP).

Source: Bloomberg