The Ethio-Djibouti Railway (EDR) has announced plans to expand its operations by investing in a major construction project in Djibouti, including a proposed 49% stake in the Damerjog fuel storage facility. This move aims to enhance regional fuel distribution and multimodal logistics capacity.

Last week, EDR CEO Takele Uma led a delegation to meet with Djibouti Ports and Free Zones Authority (DPFZA) Chairman Aboubaker Omar Hadi. The talks focused on securing a freight forwarding license, improving port-to-rail infrastructure, and deepening cooperation between Ethiopia and Djibouti.

A central proposal involves building a 17-kilometer rail line connecting the Damerjog Liquid Bulk Port to Nagad Station. Estimated at USD 90 million by DPFZA’s investment arm, GHIH, the rail link would enable efficient fuel transport, an area where EDR has yet to operate, despite owning 110 idle tank wagons.

EDR also plans to connect the line to Ethiopia’s main fuel depot in Awash, a priority for the Ethiopian government. New dry ports are also being explored at Nagad and Indode stations to boost cargo handling capacity.

The partnership marks EDR’s strategic shift into multimodal logistics through its new subsidiary, Global Logistics, reinforcing Ethiopia’s trade integration with Djibouti and the region.

Source: Capital Ethiopia