Transport & Logistics
From The Report: Djibouti 2018
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Situated on the Horn of Africa at the entrance of the Red Sea on the strait of Bab el Mandeb and overlooking routes linking Europe, Africa, the Middle East and Asia, Djibouti aims to further leverage its unique location among important routes of commerce to become an international trade hub. The country is investing in new transport infrastructure, developing ports and airports, extending road networks and easing cargo traffic with neighbouring Ethiopia through a railway connection inaugurated in January 2018. At the same time, increasingly modern facilities are removing bottlenecks and improving Djibouti’s position as a gateway for other landlocked countries in the region. However, maintaining momentum and, more broadly speaking, the economy’s positive performance will also require the diversification of economic partners. This chapter contains an interview with Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority.

Articles from this Chapter

Overview

Boosting global connections: The country looks to further leverage its strategic location by strengthening infrastructure
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Situated on the Horn of Africa at the entrance of the Red Sea on the strait of Bab el Mandeb and overlooking routes linking Europe, Africa, the Middle East and Asia, Djibouti aims to further leverage its unique location among important routes of commerce to become an international trade hub. The country hopes to maintain the stable economic growth it has seen by investing in new transport infrastructure, developing maritime ports and airports, extending road networks and easing cargo traffic…

Analysis

Wind in their sails: The revamping of its port infrastructure is putting Djibouti on the global logistics map
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In an effort to capitalise on its strategic position at the entrance to the Red Sea, significant efforts to modernise Djibouti’s maritime infrastructure are being undertaken. Providing landlocked Ethiopia, which was ranked as Africa’s fastest-growing economy by the IMF in April 2018, with a connection to one of the busiest shipping lanes for global commerce has put Djibouti in an enviable position, handling roughly 95% of its larger neighbour’s imports. In order to expand capacity to…

Analysis

Regional drive: Foreign financing and cooperation are reshaping the region’s transport capabilities
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With the aim of growing its influence in geopolitics and trade, China has been channelling financing into new infrastructure projects across Africa. As part of this, the east of the continent and the countries that make up the Horn of Africa have taken up an increasing role in the Asian country’s long-term plans. Sectors such as transport and logistics, energy generation and housing are all receiving a boost as partnership agreements and investments from Chinese entities reshape the region,…

Interview

Gateway to Africa: Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority, on East Africa’s largest free trade zone, and its relevance for Djibouti and the wider region
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What kind of opportunities will the opening of the new Djibouti International Free Trade Zone (DIFTZ) bring to the country? HADI: Djibouti’s strategic location makes it an important gateway to dynamic African markets, particularly as it lies on two of the world’s busiest maritime routes. Global trade continues to post strong growth, and as 90% of it is transported by sea, Djibouti is already an important regional and global trade hub, and will continue to be so. It is also a key node on…

Overview

Skybound: Rapid expansion of the global industry propels investment efforts
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The aviation sector is experiencing rapid growth worldwide, propelled by booming tourism industries, lower air fares and the push for greater connectivity in an increasingly globalised economy. Middle-class expansion has also spurred growth in air travel, as more people are able to afford flights for holidays or business-related travel. According to Boeing, commercial airlines experienced annual average passenger growth of 6.2% between 2012 and 2017. The manufacturer also estimated that by 2036 an additional 41,000 plane deliveries will need to be fulfilled in order to meet service needs for both passengers and cargo. To accommodate these…

Overview

Skybound: Rapid expansion of the global industry propels investment efforts
OBG
plus

The aviation sector is experiencing rapid growth worldwide, propelled by booming tourism industries, lower air fares and the push for greater connectivity in an increasingly globalised economy. Middle-class expansion has also spurred growth in air travel, as more people are able to afford flights for holidays or business-related travel. According to Boeing, commercial airlines experienced annual average passenger growth of 6.2% between 2012 and 2017. The manufacturer also estimated that by 2036 an additional 41,000 plane deliveries will need to be fulfilled in order to meet service needs for both passengers and cargo. To accommodate these…