Thursday, March 26, 2026

EIH proposes a Fuel Depot in Djibouti to Boost Regional Energy Logistics

By Eyasu Zekarias

Ethiopian Investment Holdings (EIH) has formally requested a 10-hectare plot of land within the Djibouti Damerjog Industrial Park (DDIP).

This proposal aims to construct a 150,000 cubic meter (cbm) fuel storage depot during its first phase, marking a strategic expansion into Djibouti’s specialized energy corridor.

The plan was unveiled during a high-level meeting at the Red Sea World, where the Chairman of the Djibouti Ports and Free Zones Authority, Abubaker Omar Hadi received Meleket Sahlu, Deputy CEO of EIH.

The requested site is strategically located near the park’s main manifold and the Ethio-Djibouti railway line, ensuring that fuel can be offloaded from tankers and transitioned to rail for efficient inland distribution to Ethiopia.

This initiative comes as Ethiopia seeks to diversify its logistics hubs and mitigate supply disruptions, particularly since the Horizon Terminals facility has reached its full capacity of 5 million tonnes.

In contrast, the new Damerjog Liquid Bulk Port offers an annual dynamic capacity of 25 million tonnes, along with modern infrastructure and cost-effective logistics solutions, providing a significant opportunity for Ethiopia to meet its rising fuel storage needs.

During the discussions, the Chairman encouraged EIH to seize this investment opportunity, emphasizing the critical importance of fuel reserves for national security amid the ongoing Gulf crisis.

Ultimately, this project is part of a broader vision to transform the Djibouti-Ethiopia corridor into a world-class energy hub—comparable to global centers like Fujairah—while helping Ethiopia achieve energy autonomy and reduce high demurrage costs associated with vessel delays.

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