The Ethio-Djibouti transport corridor, a vital trade route, is facing severe problems due to deteriorating infrastructure, outdated vehicles, and regulatory disputes, with both sides blaming each other for the issues.
A key trouble spot is the 143km road between Dikhil in Djibouti and Galafi on the Ethiopian border. Flood damage has left the road filled with two-metre-high gravel, making it hazardous for drivers and damaging trucks.
Dejene Luche, representing the Ethiopia Cross Border Transporters Confederation (CBTC), criticised the lack of improvements to the corridor, calling it “one of the biggest hassles.” Dejene, also general manager of Yegna Hilm Cross Border Freight Association, which operates 150 trucks, says that the poor condition of the road has caused damages to vehicles and drivers face risks.
Tesfaye Abebe, a truck driver with nine years of experience, described the road as life-threatening, with every trip posing serious dangers.
Djiboutian officials defended their efforts to repair the road but blamed Ethiopian authorities for allowing trucks to exceed the 40-ton weight limit, often carrying over 70 tons. Mohammed Ali, from the Djibouti Corridor Operation team, argued that overloaded trucks are a major cause of the damage. "Recklessness and lack of regulation by Ethiopian authorities is why the road is in such a state," he said.
The Djiboutian government has completed 42km of repairs and plans to enforce stricter regulations once the remaining 58km are finished. Officials also cited climate conditions and the road reaching its lifespan as contributing factors.
The Ethiopian Roads Administration (ERA) rejected the accusations, claiming the government enforces strict load capacity regulations on trucks.
Sisay Bekele, deputy head of corporate affairs at the ERA, dismissed Djibouti's claims about overloading trucks causing road damage. He says that Ethiopia enforces strict axle load regulations to protect roads in both countries.
"Weighbridges are being strengthened nationwide, particularly in busy export-import corridors," Sisay said. He argued that trucks exceeding weight limits have been held up in Awash, proving that controls are in place. Additionally, an automated overloading detection system is being implemented, according to him. "We are safeguarding not just Ethiopia's roads but also Djibouti's," he added.
The regulations restrict a truck's three rear axles to a combined load of 56 tons, while banning vehicles with four rear axles.
Djibouti's ports handle 95pc of Ethiopia's imports, with 7.6 million tons of goods entering Ethiopia through the ports in the first half of this year. However, a bilateral agreement covering transit, transportation, documentation, and tariffs remains unrevised, with a July 2025 deadline approaching.
Freight forwarders have voiced complaints over bureaucratic delays. Mulugeta Assefa, board chairman of MACCFA Freight Logistics, cited persistent issues with pre-clearance and transit, warning that any decline in Djibouti's port competitiveness could impact Ethiopia's economy.
A key issue is the disparity in customs working hours. Djibouti customs operates 24/7, while Ethiopian customs does not. "This costs Ethiopia the equivalent of 56 working days annually," said Elizabeth Getahun, president of the Ethiopian Logistics & Sectoral Association (ELSA).
A trilateral agreement between Ethiopia, Djibouti, and South Sudan also remains stalled, according to Djiboutian officials. Ethiopia has resisted using its route as a trans-shipment point.
Syad Ali, coordinator at the Djibouti Chamber of Commerce, said that Ethiopia's reluctance has hindered South Sudanese trade opportunities. Currently, South Sudan relies on Mombasa (Kenya), located 1,700km from Juba, for its imports and exports.
Sisay stated that agreements with South Sudan are in place for constructing a border-crossing road. The project, funded by a 738 million dollars loan agreement with South Sudan, aims to improve transport routes, boost trade, and ease logistical hurdles. Repayment will be made in cash and crude oil over 10 years.
Port operations remain a vital revenue source for Djibouti, but declining competitiveness poses risks. Djibouti's ranking on the Container Port Performance Index (CPPI) plummeted from 26th to 379th out of 405. Over the past year, 21 million tons of essential goods, including 814,000 tons of sugar, 1.9 million tons of fuel, and 2.2 million tons of fertilizer, were imported through Djibouti's ports. Geopolitical instability, infrastructure problems, port congestion, and rising transportation costs have further strained the corridor.
Ethiopian officials blame a 20-year-old agreement with Djibouti, which they say hinders efforts to modernize logistics. The government is pushing for revisions to address transit times, transportation modes, operational procedures, customs clearance, and tariffs, planning to increase private sector participation in multimodal logistics.
Transport consultant Mitiku Asmare says that the 10-year strategy launched by the Ministry of Transport & Logistics (MoTL) in 2018 will strengthen Ethiopia’s logistics sector. However, he said progress has been minimal. “Digitising customs systems, cargo tracking, and transit monitoring to improve efficiency and competitiveness are very important,” he said.
A 2023 logistics performance study scored Ethiopia 2.94 out of five, with a 53.9pc ranking in areas such as customs efficiency, infrastructure, logistics service quality, tracing and tracking, ease of international shipping, and delivery time. The lowest performance areas were infrastructure, international shipment competitiveness, and delivery times.
Mathewos Ensermu (PhD), a logistics expert and co-author of the study, attributed the poor infrastructure to transparency issues at the federal level and the absence of an autonomous oversight body.
He says that Djibouti's reluctance to establish the proposed Ethiopia-Djibouti Management Authority has left many issues unresolved along the corridor.
"The logistics supply chain is only as strong as its weakest link," he said, warning that these weaknesses could severely impact the country’s economic ambitions.
PUBLISHED ON
Jan 25,2025 [ VOL
25 , NO
1291]
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