Djibouti officials have raised objections over what they describe as "inconsistencies" in the evaluation metrics used in the World Bank's recent port ranking. Out of 405 ports, Djibouti's ports dropped from 26th place last year to 379th this year. The officials expressed immediate discontent upon the report's release, prompting high-level discussions with the ranking team.
Nicolas Peltier-Thiberg, global director of transport of the World Bank, met with Ilyas M. Dawleh, minister of Economy & Finance, and Aboubaker Omar Hadi, president of the Djibouti Port & Free Zones Authority, last week. The delegation inspected container handling facilities at the ports, with plans for further technical exchanges scheduled for September.
Ilyas reiterated Djibouti's official disagreement with the recent rankings, particularly criticising the inclusion of the marine Automatic Identification System (AIS) as a relevant factor in evaluating port performance. He said that Djibouti's ports maintain high levels of productivity, effectiveness, and efficiency comparable to top global ports.
"We hope the CPPI index team will acknowledge scientifically proven errors and mistakes," he said.
The World Bank acknowledged the discussions with Djibouti officials, attributing the decline "largely to external factors independent of the port." These factors include security concerns in the Red Sea due to missile attacks at the Bab-el-Mandeb strait and increased authorization procedures since last year.
"This decline should be interpreted cautiously," the World Bank's statement noted.
The Container Port Performance Index (CPPI), jointly produced with S&P Global Market Intelligence, showed East and Southeast Asian ports dominating the top 20 positions, with Somaliland's Berbera Port ranked 103rd overall despite its smaller size.
Amid global disruptions to ocean freight supply chains, attributed to conflicts in the Red Sea, port congestion, and anticipatory import activities ahead of peak seasons, shipping analytics platforms like Oslo-based Xeneta forecasted spot rates nearing levels seen during the COVID-19 pandemic.
The World Bank underscored Djibouti's ports as crucial logistics hubs in Africa, pivotal for regional and economic development, especially for Ethiopia. Ethiopia heavily relies on these ports, which facilitated the transit of 95pc of its 7.6 million tons of goods in the first half of the year. Djibouti has served as the primary gateway for goods since its conflict with Eritrea began in 1998.
While Ethiopia aims to diversify its sea access, including through agreements with Somaliland to rent Berbera Port and exploring options like Kenya's Port Lamu, Djibouti remains the closest and most cost-effective choice. While there are attempts to invest in other ports, Ethiopia and Djibouti continue to negotiate updates to their longstanding protocol agreement to accommodate developments in the logistics sector.
PUBLISHED ON
Jun 22,2024 [ VOL
25 , NO
1260]
Fortune News | Jun 18,2022
Radar | Feb 06,2021
Fortune News | Oct 25, 2024
Advertorials | Sep 24,2024
Radar | Oct 19,2024
Fortune News | Mar 05,2022
News Analysis | Nov 03,2024
In-Picture | Jul 28,2024
Commentaries | Oct 15,2022
Radar | May 11,2024
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 28 , 2024 . By TIZITA SHEWAFERAW
Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
Aug 2 , 2025
At daybreak on Thursday last week, July 31, 2025, hundreds of thousands of Ethiop...
Jul 26 , 2025
Teaching hospitals everywhere juggle three jobs at once: teaching, curing, and discov...
Jul 19 , 2025
Parliament is no stranger to frantic bursts of productivity. Even so, the vote last w...
Jul 12 , 2025
Political leaders and their policy advisors often promise great leaps forward, yet th...
Loading your updates...