By our staff reporter
The Ethio Djibouti Railway Company Standard Gauge Railway Share Company (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, 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 from Ethiopia and Djibouti, EDR 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.
