37. Case 33: Addis Ababa–Djibouti Railway

In the year 2007, the Technical Advisory Group (TAG) under Ethiopia’s Ministry of Transport was formed to create a framework for the modernization of the railway network in Ethiopia. In the year 2010, an agreement for the modernization of the Addis Ababa-Djibouti Railway was signed between Ethiopia and China under Belt and Road Initiative. In the same year, the MoU for the development and operation of Standard Gauge Railway Line between Ethiopia and Djibouti was also finalized. It is the first electrified standard gauge railway project in Africa. This project is part of the Belt and Road Initiative. This new modernized project has emerged as the main transport corridor for Ethiopia which connect to the Port of Djibouti. Approximately 90% of the international trade of Ethiopia is handled by the Port of Djibouti. The new rail project has immensely led to the long haul transport of freight with reduced travel times.