(3 Minutes Read)
Djibouti has issued a detailed clarification of its port fee structure after recent public debate mistakenly blended Djiboutian port charges with separate logistics and inland transport costs borne largely by Ethiopian companies. Seeking to ease tensions and underscore its commitment to regional partnership, Djibouti has also extended an invitation for Ethiopian vessels to utilize its newly inaugurated ship repair yard—an advanced maritime facility positioned to become a key maintenance hub in the Red Sea.
The matter was addressed during a high-level meeting between Aboubaker Omar Hadi, Chairman of the Djibouti Ports and Free Zones Authority (DPFZA), and Ethiopia’s newly appointed Ambassador to Djibouti, Legesse Tulu. The talks, held at DPFZA headquarters, aimed to clear up misunderstandings and reinforce cooperation in the logistics and maritime sectors—areas central to Ethiopia’s trade lifeline as a landlocked nation.
Chairman Hadi took particular issue with what he called a widespread misconception regarding the revenues generated by Djibouti’s ports. These ports serve as the principal gateway for more than 95% of Ethiopia’s international trade. According to a statement shared with Capital, DPFZA emphasized that reports claiming Djibouti earns USD 1.4 billion in port revenue are inaccurate and overlook the broader cost components associated with Ethiopia’s supply chain.
“The Chairman clarified the widely circulated misinformation regarding Djibouti’s port revenue, which is often inaccurately estimated at USD 1.4 billion,” the statement noted. “He explained that port revenue is around USD 400 million for all ports combined, including domestic cargo, transshipment, and transit.”
DPFZA stressed that the higher figure frequently cited in public discourse actually reflects inland transportation expenses—worth approximately USD 1.2 billion—which are almost entirely captured by Ethiopian-owned trucking companies operating along the Djibouti–Ethiopia corridor. To reinforce transparency, Hadi pointed out that DPFZA’s financial accounts undergo rigorous audits by EY and KPMG, underscoring the authority’s commitment to an “open book” approach.
As part of the meeting’s forward-looking agenda, Chairman Hadi highlighted new opportunities for technical collaboration. He encouraged Ethiopian Shipping and Logistics (ESL) to send its fleet to Djibouti’s state-of-the-art Ship Repair Yard, branding it “the largest and most competitive dry dock in the Red Sea.” This facility offers Ethiopia a strategically located, cost-effective alternative to distant repair destinations on other continents—an especially significant factor given Ethiopia’s unique status as one of the few landlocked nations that operate their own deep-sea vessels.
To further build confidence and operational synergy, Djibouti also agreed to deploy Djiboutian marine officers aboard ESL vessels when requested—a move aimed at strengthening maritime coordination.
The meeting additionally examined joint logistics initiatives, including a proposed sea–air cargo program. Under this plan, goods arriving by sea in Djibouti would be transferred to air freight networks operated by Ethiopian Airlines and RwandAir, enabling rapid distribution to 28 cities across 25 countries.
Discussions also touched on the Djibouti–Ethiopia–South Sudan–Uganda (DESSU) corridor, an ambitious regional connectivity project intended to enhance trade, integration, and economic development through a strategic overland route linking the four nations.
Read Also;
https://trendsnafrica.com/ethiopia-to-lay-standard-gauge-rail-line-to-ports-of-djibouti/
The Ethiopian Embassy in Djibouti underscored that both sides focused on improving port efficiency and optimizing trade corridors to strengthen Ethiopia’s import–export system. Overall, the engagement signaled a renewed effort by both countries to align their logistics strategies, clear misconceptions, and expand cooperation in the maritime and transport sectors that underpin their shared economic future.
