• Djibouti offered Ethiopia a 60% equity stake in the Tadjoura Port, according to Finance Minister Ilyas Moussa Dawaleh.
• Ethiopian government declined the proposal, seeking corridor access in addition to the equity stake.
• The statement was made during a press conference in Djibouti.
• In October 2025, Djibouti entered a 30-year concession agreement with Red Sea Gateway Terminal International (RSGTI), a subsidiary of Saudi Arabia’s Jeddah-based Red Sea Gateway Terminal (RSGT), to operate port facilities on the Red Sea.
• Discussions aimed to deepen bilateral cooperation in port and logistics infrastructure.
• The development reflects ongoing negotiations over Ethiopia’s maritime trade access.
• On March 10, DPFZA issued a notice instructing shipping agents not to impose additional surcharges on cargo loaded prior to the onset of the Gulf crisis.

Why it matters?

The proposed 60% stake in Tadjoura Port highlights Djibouti’s willingness to deepen economic integration. Ethiopia’s preference for corridor access underscores its priority for guaranteed and efficient trade routes critical to its import-export activities.

• New ship repair yard inaugurated in Djibouti to service regional and international vessels

• Facility developed to reduce reliance on foreign ship maintenance hubs

• Yard positioned near strategic Red Sea and Gulf shipping routes

• Targets servicing commercial vessels, tankers, and container ships

• Project strengthens Djibouti’s role as regional maritime logistics hub

• Supports growing traffic through East Africa–Asia–Europe trade corridor

Why it matters?
Expansion of ship repair capacity in Djibouti enhances regional logistics efficiency and could lower maintenance costs for vessels serving Ethiopia’s trade corridor.

• Three vessels docked in Djibouti carrying 143,000 metric tons of jet fuel and gasoil. 

• Deliveries included 73,000 metric tons of gasoil and 70,000 metric tons of jet fuel between March 28 and April 1. 

• AL BETROLEYA delivered 31,544 metric tons of diesel and 17,991 metric tons of jet fuel from India on March 28. 

• Brave arrived on March 30 with 52,000 metric tons of jet fuel from Oman’s Port of Duqm. 

• Andiamo docked on March 31 carrying 41,734 metric tons of gasoil from Jeddah, Saudi Arabia. 

• IMF said one-third of global fertilizer shipments pass through the Strait of Hormuz, raising food price risks. 

• IMF warned Horn economies face higher import bills, freight, insurance, and delivery delays from prolonged Gulf instability. 

Why it matters?
The article shows a short-term fuel relief of 143,000 metric tons, but the IMF warning points to continued exposure to Gulf shipping risks, higher logistics costs, and pressure on Ethiopia’s fuel, food, and foreign-exchange position. 

• Government estimates $2 billion annual loss from logistics inefficiencies
• Ministry of Transport and Logistics leads investment mobilization effort
• Logistics costs reach 30–35% of total import-export value
• Over 90% of Ethiopia’s trade moves through Djibouti corridor
• Djibouti route handles nearly all maritime imports and exports
• Multimodal transport share remains below 20% of total cargo movement
• Dry port utilization exceeds capacity in key hubs like Modjo
• Average cargo dwell time ranges between 15–20 days
• Truck turnaround time significantly exceeds regional benchmarks
• Initiative targets billions in private and foreign investment inflows

Why it matters?

High logistics costs (30–35%) and long delays (15–20 days) increase import prices and reduce export competitiveness. The $2 billion gap signals large-scale investment opportunities in Ethiopia’s logistics sector.

• Insurance pressure is intensifying, with costs up 35pc and war-risk cover being withdrawn from key routes.

• Djibouti banned retroactive freight surcharges on cargo loaded before Iran war escalation 

• Order issued by Djibouti Ports Authority dated March 10, 2026 

• Shipping lines had begun charging up to $2,000 per TEU surcharge 

• Directive separates pre-war cargo from higher-risk post-war shipments 

• Policy aims to prevent spillover of geopolitical risk costs into existing trade flows 

• Ethiopia relies on Djibouti corridor for over 90% of external trade (contextual dependency)

• Measure protects importers from unexpected cost escalation and contract disputes

Why it matters?

This decision stabilizes freight costs on Ethiopia’s main corridor, limiting sudden logistics inflation. It directly protects importers, truck operators, and LC-based trade flows from war-driven pricing shocks.

• Ethiopian Investment Holdings (EIH) proposed a fuel depot project in Djibouti to strengthen regional fuel logistics.

• The depot is planned to support Ethiopia’s fuel import supply chain via the Djibouti corridor.

• Ethiopia currently imports 100% of its fuel through Djibouti port infrastructure.

• The project aims to reduce logistics bottlenecks and improve fuel storage capacity.

• It is expected to enhance supply stability and lower distribution risks.

• The proposal aligns with Ethiopia’s strategy to secure energy supply chains and reduce disruptions.

Why it matters?
Fuel is Ethiopia’s largest import bill. Expanding storage and control in Djibouti directly impacts costs, supply reliability, and logistics efficiency for transport, industry, and trade.

• FIATA says future global trade depends on integrated multimodal logistics systems. 

• Multimodal logistics integrates sea, rail, road and air transport. 

• FIATA promoting UN Model Law on Electronic Transferable Records (MLETR) for digital documents. 

• UN convention on negotiable cargo documents ratified end of 2025 supports e-documents use. 

• FIATA collaborating with Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA) on training programmes. 

• Ethiopia is host of the 64th FIATA World Congress in 2027 with ~2,000 expected attendees. 

• Logistics digitalization and legal standards alignment highlighted as priorities. 

Why it matters?

• Ethiopia piloted rail transport of 120,000 litres diesel via Ethio-Djibouti Railway. 

• Pilot uses specialised wagons at Indode Railway Depot, Addis Ababa outskirts. 

• Initiative directed by Prime Minister Abiy Ahmed to reduce road haulage reliance. 

• Ethio-Djibouti Railway JSC and National Oil Company oversee fuel rail trial. 

• Trial validates safety standards, logistics procedures, regulatory framework. 

• Government plans to expand rail fuel transport to gasoline and jet fuel. 

• Project aligns with Ethiopia’s transport master plan to expand multimodal freight. 

why it matters?
Rail diesel transport trial could lower Ethiopia’s fuel supply logistics costs and reduce foreign-exchange outflows from road tanker dependency. It advances multimodal freight use along the Djibouti corridor.

• Ethio-Djibouti Railway (EDR) and National Oil Company (NOC) launched a pilot to transport 120,000 liters of diesel by rail from Indode depot on January 27, 2026. 

• Initiative follows a directive from Prime Minister Abiy Ahmed to begin petroleum transport via rail to modernize logistics. 

• EDR has 110 underutilized fuel tank wagons; missing connections to oil terminals have limited use. 

• Negotiations ongoing for a 1.5 km rail link from Horizon Djibouti Terminals fuel jetty to the train station. 

• Doraleh Multipurpose Port first-mile trucking (1.9 km) costs Ethiopia about USD 10 million annually. 

Why it matters: This pilot marks the first operational test of bulk petroleum movement by rail in Ethiopia, aiming to reduce logistics costs and enhance supply chain efficiency for strategic imports. If successful and scaled, it could set a precedent for transporting fuel and fertilizer via rail.