To enhance regional connectivity and trade, Ethiopia has signed a landmark Memorandum of Understanding (MOU) with Korea Railroad Corporation (KORAIL), marking a major step forward in its ambitious rail expansion plans. The agreement between the Ethiopian Railway Corporation (ERC) and KORAIL aims to improve infrastructure development, with a focus on constructing a vital railway line connecting Mojo, Ethiopia, via Moayle to the Kenyan port of Lamu.
The MOU, signed by ERC CEO Hilina Belachew and KORAIL CEO Moon-hee Han, demonstrates a shared commitment to strengthening business relationships and advancing infrastructure development. This cooperation is crucial for Ethiopia, as it seeks an alternative access point to the sea through Lamu Port.
“The Lamu Port railway line is an important part of our infrastructure plans,” emphasized Sileshi Kassa, Deputy CEO of the Railway Infrastructure Development Division. “We are actively conducting bank feasibility studies to attract donors and investors and welcome KORAIL’s support.”
At the signing ceremony, KORAIL CEO Moon-hee Han expressed deep respect for Ethiopia, highlighting the enduring ties between the two countries. “Ethiopia is a country popular with Koreans for sending troops and high-quality coffee during the Korean War,” Han said, underscoring the historical significance of their relationship.
The MOU includes a comprehensive approach to strengthening Ethiopia’s rail sector beyond the Lamu Port railway line. KORAIL will provide technical expertise and training to ERC personnel, focusing on rail operations and maintenance to increase capacity. Additionally, KORAIL will offer consulting services to improve the efficiency and sustainability of Ethiopia’s existing railway lines.
The collaboration will explore opportunities to build new railway lines, internal logistics centers, and training centers in support of Ethiopia’s long-term rail vision. Joint efforts will focus on harmonizing to international standards while ensuring the compatibility and efficiency of the rail system.
Han noted that this agreement marks a revival of rail cooperation between the two countries, which have engaged in significant developmental cooperation since establishing diplomatic relations in 1963. With a 126-year history and extensive experience in rail development, KORAIL brings significant expertise to the collaboration, having successfully delivered projects in neighboring Tanzania.
The MOU also establishes a framework for a “Korea-Ethiopia Railway Working Group” to oversee the continuous exchange of information and the implementation of common goals. This working group will facilitate discussions on current affairs, the exchange of rail information, and personnel exchanges.
Both ERC and KORAIL are committed to securing funding and optimizing resources to ensure the success of the partnership. Priority areas include a guest training program, feasibility studies of Kenya’s associated rail line, and the establishment of an education and training center.
“This cooperation is a testament to our commitment to modernizing our infrastructure and growing business,” said Hilina Belachew. “We are confident that this partnership will bring significant benefits to both countries.”
KORAIL expressed hope to expand rail cooperation in other African countries, similar to its partnership with Ethiopia. This collaboration is an important milestone in Ethiopia’s infrastructure development, promising to enhance regional connectivity and accelerate economic growth.
