The Vital Role of Djibouti Port in Ethiopian Trade

In recent months, Ethiopia has seen a significant increase in goods entering through the Port of Djibouti. The Ethiopian Sea Transport and Logistics Services Enterprise (ESLSE) reported that over 1,857,198 tons of various goods arrived in three months. This port serves as Ethiopia’s main gateway for international trade.

The head of corporate communication at ESLSE highlighted the port’s crucial role. While Ethiopia has several trade routes, Djibouti remains central to its business operations. The port facilitates the efficient transportation of both containerized and non-containerized cargo. This efficiency is vital for Ethiopia’s economic growth.

During the last quarter, Ethiopia imported 1,870,444 tons of cargo. This includes 60,107 tons of fertilizer transported from Djibouti via Kenya’s Lamu port. Of that, 13,246 tons reached Moyale. ESLSE reported that it moved 669,400 tons of cargo by sea during this period. This figure includes 267,300 tons in non-containerized form and 402,100 tons in containers.

Despite these impressive numbers, ESLSE experienced a 28% decrease in cargo transport compared to the same period of the last year. The company aimed to generate 20.46 billion birr from its services but exceeded expectations by earning 21.2 billion birr. Their expenditures totalled 18.79 billion birr, resulting in a pre-tax profit of 2.41 billion birr. Income rose by 62.4%, while costs increased by 69%.

The Ethiopian government recognizes the need to enhance logistics capabilities for sustained economic growth. ESLSE actively works on improving its services by investing in shipping infrastructure and expanding its fleet. They are forming partnerships with international shipping lines to help Ethiopian businesses access global markets more effectively.

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