The pilot is the result of a directive from Prime Minister Abiy Ahmed aimed at cutting logistics costs, reducing reliance on truck haulage from the Djibouti port corridor, and easing pressure on Ethiopia’s stretched road network.
Government sources said during a visit to Doraleh’s oil terminal that the prime minister ordered authorities to “immediately begin moving petroleum across the rail network,” highlighting efficiency, cost reduction, and national security as key motivators.
Ethiopia has historically relied on tanker trucks which has turned out to be a slow and costly process vulnerable to disruptions and high foreign‑exchange outflows, for fuel delivery from Djibouti to major consumption hubs.
Rail seen as critical economic lever
Takele Uma Banti, CEO of Ethio‑Djibouti Railways, said the trial will help validate safety standards, logistical procedures, and the regulatory framework needed for broader rollout. Though not yet quantified by officials, analysts believe this shift could sharply lower transport costs and bolster the railway’s financial sustainability by anchoring it with high‑priority freight such as fuel and fertiliser.
If the pilot meets safety and performance benchmarks, the government plans to scale rail transport to include gasoline, jet fuel, and other petroleum products, a change officials describe as “not just logistics reform but a macroeconomic intervention” that could enhance supply predictability, curb inflationary pressures, and strengthen Ethiopia’s trade competitiveness.
The trial aligns with Ethiopia’s broader transport master plan to expand multimodal freight corridors and transform hubs like Indode into integrated logistics centres, signalling a long‑term shift in how the country moves essential goods.
