Takele Uma, CEO of Ethiopia-Djibouti Railway S.C., announced that for the first time since the company's operational launch, it achieved profitability in the last quarter of 2024.
The announcement followed a comprehensive evaluation of the 2024 performance of the Ethio-Djibouti railway, conducted on 14 January, 2025.
"This achievement sets the stage for our upcoming three-year strategic plan aimed at transforming the company into a profitable venture," Takele stated on social media. "With a solid foundation of profitability now established, we are well-positioned to embark on a journey towards even greater successes in the future."
This development comes five months after Takele pledged to transform the company into a profitable entity within three years. "A three-year strategic plan and a new organizational framework have been developed to drive the necessary changes and achieve profitability," he added.
In August 2024, Takele voiced concerns about the railway's current state, revealing that only 15 out of 32 freight locomotives were operational. This shortfall has significantly reduced the annual freight carrying capacity. "The capacity should reach 6.3 million tons per year. Instead, we are currently operating at only 2.4 million tons per year," the CEO noted, representing a mere 38% of its full potential.
Spanning over 750 kilometers and connecting Addis Ababa to the port of Djibouti, the railway project is a joint venture between Ethiopia, Djibouti, and China. With a total investment of $4 billion, the project was primarily financed by China Exim Bank, which provided 70% of the funding in the form of credit, while the Ethiopian and Djiboutian governments covered the remaining 30%.
The China Railway Construction Corporation (CRCC) managed the railway's operations from its launch in 2018 until May 2024, when management responsibilities were transferred to the Ethiopian and Djiboutian governments.
In September 2024, the Ethiopia-Djibouti Railway announced the commencement of its first livestock exports by rail.