Transport & Logistics
From The Report: Djibouti 2023
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Transport and logistics play a crucial role in Djibouti’s economic development. The country is actively developing routes and infrastructure to enhance connectivity, both domestically and internationally. New port services are being introduced to facilitate industrial development and trade, attract foreign investment and promote growth. Significant investment is being made to upgrade and expand the transportation infrastructure to support increased trade and logistics activities. In addition, Djibouti is investing in livestock facilities to encourage the legal and regulated trade of animals, tapping into its strategic location as a gateway for livestock exports in the region. These efforts collectively contribute to Djibouti’s position as a key transport and logistics centre in the region, driving economic opportunities and regional integration.

This chapter contains interviews with Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority; and Robleh Mohamed Barreh, President, Djibouti Freight Forwarders Association.

Articles from this Chapter

Overview

Enhanced linkages: Investment is being channelled towards upgrading infrastructure to promote growth and development
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Situated on the Gulf of Aden on the Horn of Africa, Djibouti serves as a vital trade centre for the Middle East and East Africa. With several major ports, it connects landlocked Ethiopia and its neighbours to major trade routes to Europe and Asia. Transport and logistics has been recognised by the government as a strategic sector for growth and has helped Djibouti attract increased international interest in recent years, bringing higher levels of foreign investment to the sector. As the country invests…

Interview

Innovation roadmap: Aboubaker Omar Hadi, Chairman, Djibouti Ports and Free Zones Authority (DPFZA), on digital transformation of port processes
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Interview:Aboubaker Omar Hadi How critical is the green transition of ports to the consolidation of Djibouti as a maritime centre? ABOUBAKER OMAR HADI: The global transport sector is the second-highest contributor to greenhouse gases after fossil fuels. With 80% of worldwide trade carried by the sea, given the country’s location on the second-busiest sea trade route green initiatives undertaken by Djibouti’s maritime will be critical to accelerating global climate adaptation and resilience.…

Analysis

Connecting networks: Significant foreign direct investment in infrastructure is helping to establish Djibouti as a major trans-shipment hub
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The government has identified the development of the transport and logistics sector as key to job creation and economic diversification. The authorities have enacted several reforms to encourage private investment in Djibouti’s transport infrastructure and related industries in line with Djibouti Vision 2035, a long- term development plan aimed at transitioning the country into a middle-income economy. Country-wide reforms aimed at streamlining administrative processes, offering tax breaks and…

Interview

Encouraging signs: Robleh Mohamed Barreh, President, Djibouti Freight Forwarders Association, on overcoming challenges, increasing capital flows and introducing bespoke financial services
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Interview:Robleh Mohamed Barreh How have events that impacted the global economy affected the transport and logistics industry? ROBLEH MOHAMED BARREH: Three key factors have affected Djibouti’s transport and logistics industry: oil price increases, the Covid-19 pandemic and production restrictions in China. These elements together have resulted in significant inflation in the sector. Most of the inflationary pressures in Djibouti stem from energy prices, including oil and natural gas. The…

Analysis

Deeper ties: New development projects to establish Djibouti as a trade centre with multi-modal freight capabilities
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Multi-modal freight is becoming increasingly popular, seen as an efficient means to enhance trade with landlocked countries across continents. It has been found to increase efficiency and decrease costs when compared to traditional transport. It is optimal for countries such as Djibouti that offer vital trade links from seaports to landlocked countries through rail, road and air links. Situated on the Horn of Africa at the entrance of the Red Sea on the Bab Al Mandab Strait, Djibouti is transforming…

Analysis

Bridging the gap: G7 members work to mobilise global infrastructure investment
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Amid rising inflation and debt levels in emerging markets, in June 2022 G7 leaders pledged to raise $600bn in private and public funds over five years to finance infrastructure in developing countries and counterbalance the influence of China’s Belt and Road Initiative (BRI). The Partnership for Global Infrastructure and Investment (PGII) seeks to address many of the long-term global challenges related to climate change, energy and food security, ICT, health and gender equity. Led by the US, which…

Analysis

Greener footprint: The shipping industry works to lower its environmental impact
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As environmental concerns become increasingly pressing for governments and businesses alike, the shipping industry is taking steps to reduce its carbon footprint. In August 2021 Danish shipping company Maersk, the world’s largest container shipping line, announced that it had invested $1.4bn in eight new vessels to be powered by methanol, rather than oil-based fuels. The ships, expected to be delivered in 2024, represent 3% of the company’s container capacity. They will replace older ships and…