Addis Abeba — Ethio-Djibouti Railway S.C. officially launched its first bulk cargo containerization service on 09 September, 2024.
The launch ceremony was attended by Takele Uma, the newly appointed CEO of the railway company, and Gouled Ahmed Youssouf, the Director General of Customs and Indirect Duties of Djibouti.
In his X (formerly Twitter) account, Takele stated, "The introduction of bulk cargo containerization service is a game changer in railway transport."
Bulk cargo containerization is the practice of transporting substantial quantities of goods in standardized containers via railway networks.
As detailed on the company's social media channel, the bulk commodities slated for transportation within this system encompass wheat, edible oil, and fertilizers.
While Ethio-Djibouti Railway has historically transported commodities such as fertilizer, it has employed bulk rail transportation, a system involving the carriage of bulk commodities within railway wagons.
Global practices indicate that in bulk rail transportation, goods are directly conveyed into specialized railway wagons or freight cars without intervening packaging. The wagons employed in this model are typically designed to accommodate specific types of bulk cargo.
Moreover, under the bulk rail transportation model, goods are generally loaded and unloaded through the utilization of heavy equipment such as conveyor belts, pumps, or scoops. Consequently, the process may necessitate more labor and specialized equipment for unloading.
On the other hand, under bulk cargo containerization, standardized containers are utilized, typically conforming to the same type employed in intermodal transport, thereby facilitating easy transfer between different modes of transportation, such as ship to train.
The adoption of containers within this system also streamlines handling, as they can be easily transferred between vehicles without direct interaction with the cargo itself, thereby reducing the requirement for specialized equipment and manpower at loading and unloading points.
The recent inauguration of the bulk cargo containerization service by Ethio-Djibouti Railway comes shortly after Takele expressed concerns about the railway's current condition, revealing that only 15 of the 32 freight locomotives were operational.
"The shortfall has significantly reduced the railway's annual carrying capacity, which should be 6.3 million tons per year," the CEO remarked shortly after his appointment in mid-July 2024.
According to Takele, the railway is currently operating at just 2.4 million tons per year, which represents only 38% of its full potential.
The commencement of the bulk cargo containerization service is part of the company's broader initiative to transform the railway into a thriving institution.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Acknowledging that the company has accumulated debt over the past six years without delivering the anticipated results, Takele announced plans last week to turn the company into a profitable entity within three years.
"A three-year strategic plan and a new organizational framework have been developed to implement the necessary changes and achieve profitability," he stated during a discussion with the railway's employees in Dire Dawa last week.
The CEO expressed confidence that, by adopting effective operational and organizational strategies alongside strategic planning, the railway could achieve profitability within the specified timeframe.
During the launch ceremony held yesterday, the CEO also affirmed that the Ethiopian government is committed to ensuring the timely completion of the railway line connecting the Awash Fuel Depot to the Djibouti Horizon Terminal and to making it operational as scheduled.
This project aims to link the Awash Petroleum Depot, located in Ethiopia's Afar region, to the Ethio-Djibouti Railway.
At present, Ethiopia transports its fuel from the Port of Djibouti by truck, a method that has proven inefficient and has frequently led to shortages due to logistical challenges.
