Ethiopia will construct a key rail connection aimed at reducing its dependence on trucks for petroleum imports, officials said. The planned project will connect the state-run Awash Petroleum Depot in Afar to the Ethio-Djibouti Railway by September 2024.
Currently all fuel is transported from Djibouti by truck, which is inefficient and mostly causing shortages due to logistics hurdles. Once complete, the project will allow fuel to be delivered via the railway's underutilized tank cars, according to officials.
The 756 km China-built rail stretches from landlocked Ethiopia's capital Addis Ababa to the port of Djibouti, but failed connections have meant it cannot tap a fleet of idle fuel tanks.
The upcoming track will mesh the depot with the railway near Djibouti's Horizon Terminal, Ethiopia's primary oil entry point. This enhances efficiency and security of petroleum supply for Ethiopia's growth, according to the Ministry of Finance.
Ethiopian officials said past attempts to develop the necessary infrastructure faced delays. But funding and approvals are now in place for the September construction launch that is slated for completion within a year.