Ethio-Djibouti Railway Proposes to Construct $90M Rail Line to Djibouti’s Trade Boss
BaseLine Team
16 Jun, 2025
Ethio-Djibouti Railway S.C. (EDR) has proposed to construct $90 million railway link connecting Djibouti’s Damerjog Industrial Park to its Nagad terminal. The interest was expressed by CEO Takele Uma (PhD) in a high-level meeting with Aboubaker Omar Hadi, Chairman of the Djibouti Ports and Free Zones Authority (DPFZA), last week.
Backed by a feasibility study from Great Horn Investment Holding (GHIH), the 17 kilometer line would create a new, high-speed corridor connecting Djibouti’s industrial park directly to its port terminal.
According to officials, if greenlit, the new railway line could
Plug directly into Ethiopia’s freight backbone through the existing EDR network
Improve rail access to the Awash Oil Depot in Ethiopia
Slash logistics costs and delays by bypassing congested port trucking routes
As part of a broader play to embed Ethiopian logistics more deeply into Djibouti’s infrastructure, Ethiopia also floated an interest in acquiring a stake in the Damerjog oil depot.
A joint venture with Great Horn Investment Holding (GHIH) to build dry ports at Nagad (Djibouti) and Indode (Ethiopia) was also proposed.
The same week, Ethio-Djibouti Railway executed a key logistics milestone, repositioning 104 empty 20-foot containers from Djibouti to Indode Freight Yard, in partnership with Mediterranean Shipping Company (MSC).
Acccording to Takele, these containers are now prepped to be loaded with Ethiopian coffee and cereals, giving local producers access to shipping capacity without delays.
“This is just the beginning.” Takele Uma, CEO of Ethio-Djibouti Railway S.C.
Ethio-Djibouti Railway also announced launching a new credit facility for premium customers. Freight forwarding and customs clearance included, the credit service is volume-based, availed for a minimum of one full trainload (106x20ft or 53x40ft containers).
