The Ethiopian government is planning to upgrade the Ethio-Djibouti Railway, aiming to improve transport efficiency, strengthen trade logistics, and manage the significant infrastructure debt accumulated during its construction.

As part of this initiative, a three-year strategy has been developed to systematically address the high debt burden incurred by the Ethio-Djibouti Railway Joint Stock Company. The plan combines financial restructuring with major operational improvements to maximize the railway’s utility and economic return.

The strategy also targets an expansion in freight capacity. Last year, the railway transported 2.6 million tons of cargo. Under the new plan, this figure is expected to rise to 4.6 million tons during the current operating period, nearly doubling its capacity in just one year.

Efforts are also underway to increase the speed of rail transport. Over the next three years, the train’s current speed will be raised to 60 kilometers per hour, improving turnaround times and reducing delivery delays. These developments are particularly focused on facilitating the smooth movement of high-value cargo and imports and exports between Ethiopia and international markets.

The 750-kilometer railway, linking Addis Ababa to the Port of Djibouti, remains the backbone of Ethiopia’s trade infrastructure.

Source: The Ethiopian Herald and Sheger FM 102.1