The Ethio-Djibouti Railways, also Ethio-Djibouti Railway Enterprise, is the successor of the Imperial Railway Company of Ethiopia and jointly owned by the governments of Ethiopia and Djibouti. It was formed after Djibouti gained independence in 1977 and received the French shares of the Imperial Railway Company. The railway links Addis Abeba, the capital of landlocked Ethiopia, to the Port of Djibouti in coastal Djibouti.

The single track 781 km railway has a gauge, most of it on Ethiopian territory, and about 100 km in Djibouti. The company is headquartered in Addis Abeba; the ministers of the Djiboutian Ministry of Equipment and Transport and the Ethiopian Ministry of Transportation and Communications are the president and vice-president of the company.

The ED-Railways has annually run a deficit and is in need of rehabilitation. The European Commission prepared a grant of EUR 40 million in 2003 and raised it to EUR 50 million in 2006. On November 29, 2006, an agreement was signed with the Italian consortium Costra, and work began in 2007 on sections of the line that deteriorated following the Ogaden War.

A change in management is anticipated. This change is expected to raise the capacity of the railroad from its current average of 240,000 tons to 1.5 million tons.. Initially in 2006, the South African firm Comazar was chosen to receive a 25-year concession. However, this plan was not executed, and in early 2008, it was announced that the railway was in negotiations with the Kuwaiti company Fouad Alghanim and Sons Group.

Railway links to adjacent countries

• Ethiopia - yes -
• Somalia - no railways
• Kenya - no - same gauge
• Sudan - no - break of gauge /
• Eritrea - no break-of-gauge /

Addis Ababa railway station

The Addis Ababa railway terminal, La Gare, is a century-old historical building. A current street project threatens to lead to its isolation or demolition.

See also

• Transport in Ethiopia

References

1. CIA Factbook
2. Annual deficit, accessed 06-12-2008
3. "Ethio-Djibouti Railway rehabilitation accord signed" Walta Information Center
4. South African firm wins bid to administer Ethio-Djibouti railway Hiiran Online
5. "No concession at Ethio-Djibouti Railway" Railway Gazette International September 2007
6. May, 2008 news regading La Gare, accessed 06-12-2008.