Transport & Logistics
From The Report: Djibouti 2016
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Thanks to Djibouti’s fortuitous positioning between East Africa and the Middle East, on a key trade route between Asia and Europe, the country has long played a central role in regional trading. This has translated into a dynamic transport sector and significant GDP growth rates since the mid-2000s. In order to take its geographic advantages to the next level; however, Djibouti will need to ensure that large-scale investments to upgrade its transportation networks are implemented adequately. The opening of a new railway and road links to the north of Ethiopia will contribute to exchanges with other landlocked countries in East Africa, as well as new ports and facilities that will bring added capacity to freight handling. Although large-scale investment in port infrastructure will be critical, coordination between the building of new maritime commerce infrastructure, and the rest of the inland road and railway networks will be essential for the Djiboutian transport and logistics sector to function properly as an integrated system. This chapter contains interviews with Moussa Ahmed Hassan, Minister of Equipment and Transport; Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority; and Mario Fulgoni, CEO, Air Djibouti.

Articles from this Chapter

Overview

Connecting the country: New transport infrastructure better positions Djibouti in international trade
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In light of Djibouti’s fortuitous positioning between East Africa and the Middle East, and on a key trade route between Asia and Europe, the country has long played a central role in regional trading. Increasingly, however, it is looking to parlay that lineage into an even greater role, expanding infrastructural capacity and linkages to ensure the small 800,000-person nation is able to act as a prominent gateway to the fast-growing markets surrounding it. Projects More than $14bn worth of new…

Interview

Major changes: OBG talks to Moussa Ahmed Hassan, Minister of Equipment and Transport
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Interview:Moussa Ahmed Hassan What are the main developments that are occurring in Djibouti’s transport sector? MOUSSA AHMED HASSAN: Our vision is to construct an integrated logistical ecosystem in Djibouti to optimise the transportation of goods and build our status as the main gateway to East Africa. First, the construction of a new railway connecting Addis-Ababa to Djibouti, extending over 750 km, was announced in summer 2013. The project – which required an investment of $4bn –…

Analysis

Good neighbours: A jump in Ethiopia-bound trade increases traffic and prompts reforms
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Serving as Ethiopia’s connection to maritime shipping, Djibouti’s cargo sector has seen an increase in traffic related to the neighbouring country’s expanding economy. This critical transport connection has been maintained through a highway link that connects Djibouti and its port all the way into Ethiopia and its capital Addis Ababa. Although the development of alternative infrastructure such as airports and new railway lines will diversify transport options, road traffic will remain a key…

Analysis

Docking space: Investment in new port infrastructure to capitalise on the country’s location
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Djibouti is currently undergoing an infrastructure expansion that will require the mobilisation of over $14bn, a large component of which will be allocated to the establishment of new ports and terminals across the country’s coast. Long History Djibouti’s has long played a key role in regional trade throughout the Horn of Africa, the Middle East and East Africa, sitting as it does on a major shipping lane and with easy access to several large markets. However, it has received a significant…

Interview

Extensive developments: OBG talks to Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority
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Interview:Aboubaker Omar Hadi How is Djibouti financing the large capital investments required for its port upgrades? ABOUBAKER OMAR HADI: Djibouti’s economic growth in recent years has been the result, in large part, of increased activity in the transport sector, and specifically the volume of traffic coming through – and the performance of – the ports. Djibouti is not only well-placed in terms of access to Africa and the Middle East but also sits on the major shipping route between…

Interview

Taking off: OBG talks to Mario Fulgoni, CEO, Air Djibouti
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Interview:Mario Fulgoni How are the challenges of establishing the new national airline being met? MARIO FULGONI: Working in any developing economy, the biggest challenges are always infrastructure deficiencies and a limited local skills base. In order to launch a technical project it is necessary to bring in expatriate workers and consultants. In addition, the local market for passenger traffic will be restricted until the new free trade zone and business district are completed. Establishing…