Ethio-Djibouti Railway Secures over 20m USD Revenue

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Ethio-Djibouti Railway secured more than $ 20 million revenue from its passenger train and freighter services in the last eight months.

A media tour was organized by Chinese embassy visit the Chinese built railway and investment in Adama Industrial Park which is about 70 km from Addis Ababa.

According to a report delivered during the occasion, the freighter and commuter have gained revenue of 19.9 million and 537,400 USD respectively from January up to July 2019 with the passenger train transporting 39,000 commuters.

During the media tour, Chinese Ambassador to Ethiopia, Tan Jian said the railway is very important to Ethiopia as 95 percent of import and export goods passes through Djibouti.

As the railway has created a convenient transportation corridor for the import and export goods of Ethiopia, it plays a significant role to speed up industrialization and the ongoing development in the nation.

The 750 kilometers Ethio-Djibouti was built jointly by Ethiopia and Djibouti started operation on January 1, 2018 and is accelerating its positive impact on development.

Of the total 15 industrial parks, nine of them are along the railway line, Ambassador Jian indicated, adding that this is not just a line it is a corridor and we do believe that this corridor can be game changer for economic development.

The passenger train, which passes through 19 stations in 15 hours to arrive in Nagad, Djibouti, has three different compartments, namely hard-seat, hard-berth, and soft-berth compartments.

EDR Director-General, Engineer Tilahun Sarka said on his part that the past year was promising as the railway managed to move 800 trains.

“The first year operation which means 2018 is really promising, we managed to move some 800 trains and we earned revenue of around 35 million USD,” he pointed out.

There are currently 900 Ethiopians and 250 Djiboutian working at the railway, it was indicated.

Sunshine Wool Textile Plc, which is one of Chinese companies in the industrial park,  is advancing to export products worth 10 million USD annually and while expected to top 50 million USD. Sunshine, which is anticipated to invest 980 million USD in two phases, has created 2,000 jobs and is expected to reach 7,000 in the completion of the first phase.

Source: ENA