Wednesday, September 16, 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.

Hot this week

Production up, but the ‘cost’ variable weighs heavily

Production is up in 2021 for the Italian agricultural...

Luminos Fund’s catch-up education programs in Ethiopia recognized

The Luminos Fund has been named a top 10...

Well-planned cities essential for a resilient future in Africa concludes the World Urban Forum

The World Urban Forum (WUF) concluded today with a...

Private sector deemed key to unlocking AfCFTA potential

The private sector’s role is vital to fully unlock...

Ethiopia, Kenya finalize preparations to scale up cross-border power trade by December 2026

Ethiopia is finalizing preparations to double its electricity supply...

Ethiopia records 824% remittance growth over the decade, accounting for 5% of national GDP

Ethiopia has rapidly ascended to become Africa’s fourth-largest remittance...

Ethiopia Rejects Commercial Buyback Offer for Looted 18th-Century Royal Gospel

The Ethiopian Heritage Authority has confirmed to Capital that...

Djibouti positions itself as Horn of Africa logistics gateway with new WFP base handover

The Government of Djibouti has officially assumed full management...

Dangote Refinery launches historic $1.6B IPO

The Nigerian Exchange (NGX) officially launched the initial public...

IOM warns Sudan humanitarian system faces collapse within weeks without new funding

The International Organization for Migration (IOM) has issued an...

Safaricom surpasses 15 million subscribers as it marks five years

Safaricom is marking five years since it received a...

Africa’s economic momentum is building as savings and cross-border trade activity accelerate

Rising savings, increasing cross-border payment activity and growing participation...
spot_img

Related Articles

Popular Categories

spot_imgspot_img