Corridor Costs

Djibouti to Addis Ababa corridor

Last checked: 20 October 2026 · Corridors

Djibouti handles over 90% of Ethiopia's international trade, according to a Global Infrastructure Hub case study 1. The 753 km electrified standard gauge railway between Djibouti and Addis Ababa began commercial operation on 1 January 2018. It cut long-haul freight travel time from up to 50 hours to 10 hours 1. Maersk gives 10 free days for dry import containers to Ethiopia, then charges from US$25 a day for a 20-foot box 2.
Share of Ethiopia's international trade through Djibouti
Over 90% 1
Railway length
753 km, electrified, single track, standard gauge, 45 stations 1
Commercial operation began
1 January 2018 1
Freight travel time by rail
About 10 hours, down from up to 50 hours 1
Railway ownership
Ethiopia 75%, Djibouti 25% 1
Maersk free time, dry import containers, Ethiopia
10 days 2
Maersk demurrage and detention, dry, days 11 to 17
US$25 a day for 20 ft, US$50 for 40 ft 2

The railway

The Ethio-Djibouti Standard Gauge Railway Company (EDR) runs the line. It is a joint venture owned 75% by Ethiopia and 25% by Djibouti 1. The line replaced a 780 km metre gauge railway built in 1917 1.

The engineering, procurement and construction contract went to CREC and CCECC in 2011. Freight service opened in October 2015 and official commercial operation began on 1 January 2018 1. The cost was US$5.1 billion in 2011 values. Ethiopia and Djibouti financed 30% and the rest came from concessional loans from China Exim Bank, China Development Bank and ICBC 1.

The case study gives a freight capacity of 11.2 million tonnes, rising to 24.9 million tonnes by 2025. It forecast cargo of about 2.3 million tonnes in 2025 1. It says the Chinese contractors operate the line for six years after completion and EDR takes over management from 2024. A summary table in the same study says the contractors operate until 2023 1.

Reported problems on the railway

  • Traffic has been below forecasts, and Chinese lenders extended the Ethiopian repayment period from 15 to 30 years 1.
  • The debt is in US dollars. Costs and revenue are in Ethiopian birr 1.
  • Links with existing freight and port networks are limited, according to the case study 1.

Shipping line free time and demurrage

Maersk publishes import free time and charges for Ethiopia. Its rates are valid from 29 August 2024 until further notice 2. For dry and non-operating reefer containers the page lists these daily charges after free time 2.

Maersk, Ethiopia imports, dry20 ft40 ft
Free time 210 days 210 days 2
Days 11 to 17 2US$25 a day 2US$50 a day 2
Day 18 and above 2US$35 a day 2US$70 a day 2

Dwell times reported to UNCTAD

At a UNCTAD workshop on 25 November 2021, the Director General of the Ethiopian Coffee and Tea Authority presented slides stating his own views 6. They said goods take 20 to 30 days to reach Ethiopia from Djibouti port, with port dwell times of 37 days at Djibouti and 59 days at the Modjo dry port 6. The slides gave the railway length as 750 km, against 753 km in the Global Infrastructure Hub study 1,6.

Road charges, bonds and corridor projects

  • COMESA harmonised road transit charges are US$10 per 100 km for trucks with more than three axles. Ethiopia is among the countries listed as using them 3.
  • Djibouti and Ethiopia are signatories of the COMESA RCTG Carnet regional transit bond 3. In December 2022 COMESA said both had finished preparations and were ready to start operations 4.
  • The World Bank approved the Djibouti Regional Economic Corridor Project on 16 December 2021. It aims to improve regional connectivity and logistics efficiency in Djibouti along the southern Djibouti to Addis Ababa corridor and closes on 31 December 2031 5.

Common questions

How long is the Djibouti to Addis Ababa railway?

753 km, according to the Global Infrastructure Hub case study 1.

How long does rail freight take from Djibouti to Addis Ababa?

About 10 hours of travel time, down from up to 50 hours 1.

How many free days do containers to Ethiopia get?

Maersk gives 10 days for dry import containers 2.

Can transit cargo to Ethiopia use the RCTG regional bond?

Ethiopia and Djibouti signed the scheme and were ready to start operations in December 2022, according to COMESA 3,4.

Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.

Sources

  1. Global Infrastructure Hub: Addis Ababa to Djibouti Railway case study (30 November 2020)
  2. Maersk, provider page: Ethiopia import information, free time and demurrage (accessed 20 October 2026)
  3. COMESA: Trade facilitation programme, road transit charges and RCTG Carnet (accessed 20 October 2026)
  4. COMESA: Statement by the Secretary General, RCTG Regional Stakeholders Workshop, Victoria Falls (13 to 15 December 2022)
  5. World Bank: Projects database, Horn of Africa Initiative, Djibouti Regional Economic Corridor Project, P174300 (accessed 20 October 2026)
  6. UNCTAD: Presentation by Adugna Debella Bote, Ethiopian Coffee and Tea Authority, workshop on landlocked developing countries (25 November 2021)

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