Business Plans

The Electric Railroad connecting the landlocked Ethiopia to Djibouti officially opens

Ethiopia and Djibouti officially get the bragging rights to be the pioneers of a fully electrified cross-border railroad across Africa.

Bragging rights aside! Ethiopia and Djibouti have opened up an electric railroad running from Addis to the Red Sea port of Djibouti. A distance stretching a little over 466 miles (750 kms) and at a cost to the tune of about $3.4 billion. This electric railroad runs parallel to an old one laid down over 100 years ago.

The track will dramatically reduce travel time and cost of cargo imports bound to Ethiopia through the Red Sea port of Djibouti. To the landlocked Ethiopia, the port of Djibouti is critical to its economy’s survival and growth; given about 90% of Ethiopia’s imports pass through the port.

In Ethiopia currently if you want to bring your container from Hong Kong to Djibouti, it will take you maybe two, three weeks. But it will take you more than that to take it from Djibouti to Addis Ababa. It will now take use one day or more,

” said Getachew Betru, Chief Executive of Ethiopia Railways.

The fact that the new electric railroad will boost Ethiopia’s economy is evident to every stakeholder. During the opening ceremony yesterday, by the Ethiopian Prime Minister Hailemariam Desalegn, he said, “It will provide huge benefits to the industrial parks and modern farms that will be built in the future.”

Financing of the Railroad

The Ethiopia – Djibouti railway was 70% financed by the Chinese Exim Bank. The construction work was done by the China Railway Group and China Civil Engineering Construction. Now that it is fully complete and up and running, the railroad will be under Chinese control over the next five years.

China will provide the rail controllers, technicians, and even the station masters. During that time, the locals will be employed in other positions and as apprentices to replace the Chinese when they leave in five years’ time.

This rail is part of a grand plan to build a railroad network spanning over 3,107 miles (5,000Kms) connecting Ethiopia, Sudan, South Sudan, and Kenya. Hopefully by the year 2020. This plan also hopes to extend the railroad all the way to the Atlantic Ocean from the coast of Djibouti.

Milicent Atieno

Proud Kenyan Citizen, loving everything Tech related.

Recent Posts

How the Internet Has Changed the Music Industry?

Technology has had a significant impact on the music business throughout the years. The ways…

2 hours ago

How to Start Your Own Business from Home

Since the pandemic forced the majority of businesses to shut their doors and send their…

11 hours ago

Trends that Define Future of Mobile App Development

Mobile application development is not something that has suddenly appeared this year. It was actually…

24 hours ago

Healthcare Application Development Companies

Nowadays, mobile apps are being used in different fields. Few companies specialize in designing apps…

3 days ago

What is the Future of Education?

Image: Pexels Source CCO License Education is changing and arguably for the better. This is…

4 days ago

Why Is Intelligent Search So Valuable?

Introduction How much time do you spend (or waste) searching for the appropriate and relevant…

4 days ago