Djibouti – the logistic hub of the Horn of Africa

Djibouti wants to establish an Excellence Centre of Transport and Logistics. Image: DPFZA.

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Djibouti is strategically located on the northeast coast of the Horn of Africa. It controls the vital passage and the southern entrance from the Red Sea to the Indian Ocean – an essential international trade route connecting Africa, Asia and Europe. 50% of the world’s shipping lines pass through this strait. With the largest and most developed port along the East African coast, Djibouti has become a major hub for transshipment serving the whole region.

Furthermore, 85% of the external trade of Ethiopia, which witnessed enormous growth during the past decade, is handled through the port of Djibouti. Connected by raod and rail to landlocked Ethiopia, and thereafter to the heart of Africa, the port of Djibouti is ideally located to serve COMESA (Common Market for Eastern and Southern Africa) with its 20 member countries and a population of 390 million people.

In May 2017 it opened the country’s latest mega project – the Doraleh Multipurpose Port (DMP). The new 690 hectare facility is equipped with ultra-modern facilities that can accommodate 100,000 dwt vessels. The port provides a world-class logistics platform for shipping. The new facilities will vastly improve the efficiency and ease of doing business in the Horn of Africa. The project cements Djibouti’s position as a critical junction on the “Maritime Silk Road”.DMP is the latest in a series of mega projects in Djibouti. These projects include four new ports, a Liquefied Natural Gas facility, an oil terminal, and two brand new airports. Together they will dramatically expand Djibouti’s ability to serve as a platform and trade hub for the region.

The projects follow the completion of the Addis Ababa-Djibouti Railway, a new 752km track linking Ethiopia’s capital with the Port of Djibouti.Djibouti sits at the centre of world trade routes, connecting Asia, Africa and Europe. The port is a gateway to one of the fastest growing regions of the world with 30,000 ships transiting the port each year. Goods from Asia represent 59 per cent, with 21 per cent coming from Europe and 16 per cent from elsewhere in Africa.

Djibouti is likely to become a logistics hub for the Horn of Africa and the East African region, just as Singapore for Indonesia, Malaysia and other Southeast Asian countries, with trade and logistics services. Ethiopia, Sudan, and South Sudan all provide considerable markets for the development of the logistics and trade sectors in Djibouti.

A high-level delegation from Djibouti was hosted by PTV Group. (Photo: PTV)

A high-level delegation from Djibouti was hosted by PTV Group 

As the African nation wants to establish an “Excellence Centre of Transport and Logistics” they organized a delegation trip to Germany to get further insights into German technology and solutions in this field. Therefore, the Minister for Higher Education and Research, His Excellency Dr. Nabil Mohamed Ahmed, visited the City of Karlsruhe and PTV Group. He was accompanied by the Ambassador of Djibouti in Germany, His Excellency Aden Mohamed Dileita, and representatives of the local business development. They were keen on learning more about how to adapt existing solutions for transportation planning and optimization to their local needs. We are looking forward to continuing our good cooperation.