The Ethio-Djibouti Railway (EDR) SC is undergoing a major structural transformation into a holding company, supported by a new World Bank-funded initiative. This move aims to strengthen its role in railway operations, logistics, and engineering across Africa’s transport sector.

The company recently launched its first privately financed railway project, a three-kilometer line in Gelan, marking a new era of private sector participation in the railway industry. EDR’s expansion includes the creation of EDR Global Logistics for multimodal cargo transport and an engineering division focused on railways, highways, and port infrastructure, including dry ports.

EDR has demonstrated rapid infrastructure rehabilitation capabilities and contributed to the original Addis Ababa–Djibouti railway construction. A key driver of its new direction is the World Bank financed project in Dewale, Somali Region, which involves establishing a joint Ethiopia - Djibouti customs and logistics port on 200 hectares of allocated land.

The company is also setting up a Training Excellence Center to develop skilled railway professionals, currently training 50 participants from both countries. EDR plans to extend its expertise to other African nations through consultancy and project bids.

Private involvement is expanding as well, with AMG Holdings becoming the first private firm to partner with EDR for a rail link to its industrial park in Dire Dawa. The project, expected to be completed within six months, aims to reduce transport costs and support sustainability. EDR’s strategic restructuring positions it as a rising continental leader in integrated transport and logistics solutions.

Source: Capital Newspaper