Ethio-Djibouti Railway Signs Five-Year Technical Deal with Chinese Contractor

The Ethio-Djibouti Railway (EDR) has signed a five-year technical consultancy agreement with the China Civil Engineering Construction Corporation (CCECC), set to begin in January 2026. The deal aims to enhance the operational capacity and infrastructure development of the regional railway line.

The agreement comes as the railway seeks to build on recent operational successes. Ethiopian management, which took full control from Chinese operators in May 2024, reported that the cargo line became profitable for the first time in 2025, with freight volume quadrupling to six million tonnes annually.

EDR CEO Takele Uma emphasized that the partnership will provide critical expertise as Ethiopia pursues major transport projects, including linking the railway to key industrial parks and developing a fully integrated network for the Horn of Africa. The agreement focuses on strengthening areas where the railway seeks to boost efficiency over the next five years.

CCECC Ethiopia CEO Li Qingyong stated that the company’s services under the new pact will include rigorous quality evaluations and tailored training programs designed to build local capacity. The objective is to empower Ethiopian technicians to independently manage and sustain the railway infrastructure.

The Addis Ababa-Djibouti Railway, inaugurated in 2018 as a Belt and Road Initiative project, has recorded over 2,400 days of uninterrupted service.  In July 2025,  the Ethio-Djibouti Railway reported approximately 7 billion birr in revenue, accounting for half of the total income from Ethiopia’s major transport and logistics institutions.

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