Ethiopia Djibouti Railway port links expand to DMP and HDTL

Ethiopia Djibouti Railway port links are set to expand rail access from the Ethio-Djibouti Railway (EDR) to additional strategic port facilities, with key connections intended to be completed by the end of 2026, as reported by Capital Ethiopia. In broad terms, the initiative is framed as a step toward reinforcing the corridor that supports Ethiopia’s external trade.

Ethiopia Djibouti Railway port links endorsed by the JRC

The latest commitments were endorsed this week by the Ethio-Djibouti Joint Railway Commission (JRC), a ministerial platform established under the 2016 bilateral railway agreement. The commission met in Djibouti on February 17, 2026, and was co-chaired by Ethiopia’s Minister of Transport and Logistics, Alemu Sime, and Djibouti’s Minister of Infrastructure and Equipment, Hassan Houmed Ibrahim.

Sources familiar with the talks said the commission agreed on measures meant to accelerate implementation. In addition, the package includes joint technical studies and steps to facilitate cross-border movement of EDR personnel, equipment, and machinery. The objective is to support efficient delivery of the planned port linkages without changing the existing operational framework of the corridor.

Connecting Doraleh Multipurpose Port and the HDTL oil terminal

According to those sources, the commission’s priority is to speed up rail connectivity to the Doraleh Multipurpose Port (DMP) and the oil terminal operated by Horizon Djibouti Terminals Limited (HDTL), with completion targeted by November 2026. Currently, only the SGTD container terminal at Doraleh is directly linked to the railway.

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The push follows Prime Minister Abiy Ahmed’s recent visit to Djibouti, during which he emphasized rail’s cost advantages and encouraged greater cargo volumes to shift from road to rail. Meanwhile, during mid-January discussions with President Ismail Omar Guelleh, the talks reportedly focused on positioning the railway as the backbone of bilateral trade—an approach the JRC is expected to translate into operational outcomes.

Ethiopian officials say the administration wants rail-based transport to handle a larger share of petroleum and fertilizer shipments. Still, swift connectivity to DMP is treated as particularly important for fertilizer imports that are viewed as strategic for Ethiopia’s agricultural productivity.

Damerjog, DLBP capacity, and the planned 17-kilometer rail line

The commission’s discussions also covered the Djibouti Damerjog Industrial Development (DDID) project, a major port and industrial complex located about 16 kilometers south of Djibouti City near the Somaliland border. As part of that wider development, Djibouti is finalizing construction of the Damerjog Liquid Bulk Port (DLBP), which Ethiopian officials consider significant for meeting growing fuel demand.

During a site visit on Monday, Alemu conveyed Ethiopia’s interest in using DLBP to expand storage and handling capacity. At present, the Ethiopian Petroleum Supply Enterprise relies on the Horizon depot at Doraleh, with roughly 350 trucks transporting fuel daily to Ethiopia. At the same time, rising consumption, fully utilized storage capacity, and mounting demurrage costs have driven Ethiopia to look for alternative facilities capable of handling larger volumes.

According to the Djibouti Ports & Free Zones Authority, DLBP’s oil jetty is expected to have an annual capacity of 25 million tonnes and support up to 12 vessel rotations. The port is also planned to serve multiple storage terminals with a combined static storage capacity of around two million cubic meters, providing scale intended to support Ethiopia’s expanding energy logistics.

As part of the rail expansion, EDR plans to build a 17-kilometer line linking the Damerjog oil terminal to Nagad Railway Station in Djibouti, enabling direct fuel transport to Ethiopia. A feasibility study by Great Horn Investment Holding, a subsidiary of the Djibouti Ports and Free Zones Authority, estimates the project’s capital expenditure at USD 90 million—roughly USD 5 million per kilometer. Separately, EDR has expressed interest in acquiring a 49 percent stake in the Damerjog fuel storage project, including infrastructure for jet fuel handling.

Cost pressures at Doraleh and EDR’s wider project pipeline

Prime Minister Abiy toured both HDTL and DMP earlier in January. While DMP handles a substantial portion of Ethiopia’s imports, including fertilizer, it currently relies on a 1.9-kilometer trucking link to connect with the railway—an arrangement estimated to cost about USD 10 million annually. Also, establishing a direct rail connection is therefore treated as a priority to reduce costs and improve efficiency.

The HDTL terminal—operated by the UAE’s ENOC Group—is also slated for rail integration; ENOC has referenced HDTL in its own communications, including an ENOC Group news release. Under the proposed arrangement, EDR would construct the approximately three-kilometer extension, while the terminal operator would develop the loading infrastructure needed to support rail operations.

Following the JRC session, EDR CEO Takele Uma described the outcome as the start of a new chapter in bilateral railway cooperation. For example, he said the commission endorsed a strategic roadmap aimed at ensuring seamless railway operations while positioning EDR as the central artery of trade between Ethiopia and Djibouti. He also highlighted ongoing logistics reforms along the Djibouti Corridor and efforts to increase capacity and streamline supply chains.

At the same time, EDR is expanding its domestic portfolio. The company is rehabilitating sections of the existing railway and completing a three-kilometer spur line linking the AMG Industrial Park to Gelan Station. In addition, it has also signaled interest in a future 40-kilometer dual-track line connecting Bole International Airport to a planned airport city in Bishoftu, supported by technical cooperation with China Civil Engineering Construction Corporation.

Industry sources indicate that EDR is expected to lead both the DMP and HDTL rail connection projects. If the Ethiopia Djibouti Railway port links are delivered on schedule, the new connections are expected to lower transport costs, ease congestion along the corridor, and reinforce the railway’s role in supporting Ethiopia’s trade through Djibouti.

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