The Ethiopia-Djibouti Railway S.C. reported its first profitable quarter since launching operations, marking a significant milestone in its financial performance. The announcement was made following a performance evaluation for 2024, conducted on January 14, 2025.
CEO Takele Uma highlighted this achievement as a critical step toward the railway’s transformation plan. He shared that the company has developed a three-year strategy and a new organizational framework to sustain and enhance profitability.
Despite challenges, including only 15 of 32 freight locomotives being operational, efforts to improve performance have begun yielding results. According to Addis Standard the railway, which connects Addis Ababa to Djibouti’s port, operates at 38% of its full freight capacity, carrying 2.4 million tons annually instead of the potential 6.3 million tons.
This 750-kilometer railway, built as a collaboration between Ethiopia, Djibouti, and China, required a $4 billion investment, largely financed by China Exim Bank. Operational control shifted from China Railway Construction Corporation to Ethiopian and Djiboutian authorities in 2024.
Recent initiatives, such as launching livestock exports by rail, signify the company’s efforts to diversify and optimize operations.