Ethio-Djibouti Railway

Ethio Djibouti Railway aims for 4.5 billion birr revenue

Mar. 17, 2024 (EDR):- The EthioDjibouti Railway Company Standard Gauge Railway (EDR) is targeting a revenue of 4.5 billion birr this year while also expanding its fleet with the addition of shunting locomotives.
Formerly managed, operated, and
maintained by a Chinese joint venture
(JV) until January 1st, 2024, the railway has since transitioned to full control by Ethiopian and Djiboutian workers.
Abdi Zenebe(Ph.D.) ,CEO of EDR, expressed
pride in the transition, emphasizing the
company’s commitment to success in its  new phase. “Taking over the operation and maintenance of the company is a big achievement for us,” stated Abdi, highlighting the implementation of an organizational structure aimed at positioning the company for future success.
Acknowledging the challenges faced
during the transition, Abdi praised the
commitment of Chinese engineers in
sharing knowledge and empowering
local staff. Despite initial challenges with power, parts, and security, Abdi noted that these issues have largely been resolved, paving the way for increased demand for both freight and passenger services.
Over the past six years, EDR has
witnessed remarkable growth, with
revenue climbing from 738 million birr
in 2018 to an anticipated 4.5 billion birr
in the current budget year, reflecting
an average yearly growth rate of 38.4
percent. Abdi indicated that revenue is
expected to continue increasing alongside the expansion of operations, with the railway’s share of overall import-export freight rising from 8.5 percent in 2018 to 15 percent today.
With a workforce of 4,000 employees
has significantly increased its freight
transportation share, transporting 2.1
million tons in 2023 compared to 885,000 tons six years ago. The railway’s operations have also had a positive impact on the efficiency of Djibouti’s ports, according to Abdi, with notable improvements in port efficiency and logistics.
EDR’s efforts to enhance customer
satisfaction include expanding the range of services offered and utilizing existing train carriages for various purposes. The company recently transported 2,499.52 tons of billets freight from Djibouti to Indode Railway Station, underscoring its commitment to meeting the diverse transportation needs of the region.
Looking ahead, Abdi revealed plans
for further expansion and innovation
in both passenger and freight services,
building on the company’s success
in recent years.
As EDR continues to evolve under Ethiopian and Djiboutian leadership, it remains poised to play a vital role in driving economic growth and connectivity in the region.
Source: Capital Newsletter
Year 26, No. 1319 Sunday Mar. 17, 2024
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