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Ethiopia to Build Railway Link Connecting Awash Fuel Depot to Djibouti's Horizon Terminal

13:05, 16 August 2024

Ekaterina Shilova

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Despite the launch of a modern electric railway line in 2018, fuel transportation in Ethiopia remains inefficient. To streamline the process, it was decided to build a direct rail link to the Awash petroleum depot, a key hub for national fuel imports located near the Ethio-Djibouti railway line.

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The Ethiopian government has announced plans to construct the Awash-Djibouti Railway Link. This project, formalized by a signed agreement between Ethiopia and Djibouti, will connect the Awash fuel depot to the Horizon Terminal in Djibouti.

This railway project aims to streamline oil loading services at the Horizon Terminal for Ethiopia, facilitate fuel transportation between the two nations, foster economic growth, and increase trade. The project is expected to be launched in the upcoming Ethiopian year of 2017 (Ethiopia will welcome 2017 on September 11).

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Following discussions between Ethiopian Finance Minister Ahmed Shide and a Djibouti delegation led by Energy Minister Younis Ali Guedi, both countries agreed to proceed with the railway project. After a technical review, a construction contract was signed in September.

Senior officials from both Ethiopia and Djibouti were present at the discussions, highlighting the importance of the project to both nations.