Chinese-built Ethiopia-Djibouti railway records increase in revenue despite pandemic

[onebyone]

Photo taken on Sept. 5, 2020 shows the Lebu station of Ethiopia-Djibouti Railway on the outskirts of Addis Ababa, capital of Ethiopia. (Xinhua/Michael Tewelde)

The Chinese-built Ethiopia-Djibouti railway records an over 51 percent increase in revenue during the first half of 2020 despite the challenges brought by the COVID-19 pandemic.

ADDIS ABABA, Sept. 19 (Xinhua) -- The Ethiopia-Djibouti Standard Gauge Railway has recorded an over 51 percent increase in revenue during the first half of 2020 despite the difficulties brought by the COVID-19 pandemic, the railway's managing entity said on Friday.

The 756-km railway, which officially commenced its commercial operations for both passenger and freight services between landlocked Ethiopia's capital Addis Ababa with ports in Djibouti in January 2018, has been instrumental in leveraging transportation needs of Ethiopia from its neighboring Red Sea nation of Djibouti.

Contracted by two Chinese companies, the railway, which is considered to be Africa's first fully electrified trans-boundary railway, has made "consistent progress" since its operation commencement in January 2018, according to figures from the Ethiopia-Djibouti Railway Company.

Photo taken on Sept. 5, 2020 shows the Lebu station of Ethiopia-Djibouti Railway on the outskirts of Addis Ababa, capital of Ethiopia. (Xinhua/Michael Tewelde)

The railway's revenue had increased 45 percent in 2019 as compared with its maiden year in 2018, while its income also climbed by 51.38 percent in the first-half of 2020 as compared with the same period of 2019 despite the difficulties brought by COVID-19 pandemic, it was noted.

Amid its ever expanding services, the railway had in August also commenced the refrigerated train service, by which the Ethiopian fruits and vegetables will be sold to Europe and other parts of the world.

The railway, is currently managed by a consortium of Chinese companies for a period of six years.

According to the Chinese managing joint venture office, the supplementary facilities installed by the Ethiopia-Djibouti railway are being improved and fostering a better future.

The Ethiopia-Djibouti railway presently provides different kinds of freight services including the transportation of perishable goods, vehicles, cereals and fertilizers at Indode, Mojo, Adama, and Nagad stations.

Ethiopia's Transport Minister, Dagmawit Moges, stressed that the Ethiopia-Djibouti railway "is a flagship of mega projects of three brotherly countries: Ethiopia, Djibouti and China."

Chinese-built Ethiopia-Djibouti railway records increase in revenue despite pandemic - Xinhua | English.news.cn

 

[onebyone]

https://twitter.com/x/status/1307292871096057857

 

[onebyone]

https://twitter.com/x/status/1307292871096057857

 

[onebyone]

https://twitter.com/x/status/1307150857427808258

 

[FuturePAF]

Pakistan should really study how this railway operates to get ready for upgrades to its own railway in partnership with China.

Identify what would work best to generate the most revenue and how this train can help build up the tourism industry should be identified.

there could be some things we have to adapt in our train culture to make sure the transition will go smoothly (and we can keep to the time schedules), especially when passengers will no longer be allowed to have a Laisse-a-faire attitude to what they can bring onboard and where they can be on the train when not in their seats.

We should see how tickets are sold and checked (hopefully on the platform or at the station and not on the train). We should see how food is sold on the trains. It would be best to have affordable hot meals prepared at a station and not on the train, taking up an entire car to cook. If the train can keep tohe schedule it can pick up freshly cooked food and be delivered on the train, boosting the tourism appeal of that city along the way. Using an entire car as a kitchen will be inefficient when trying to generate revenue

Restroom facilities will also have be such that they don’t expel waste onto the track, and are easy to keep clean.

it goes without saying all cars should have air conditioning, but we should see how this is addressed in Ethiopia. Also how well this train keeps to the schedule and what causes its delays should also be studied.

 

[FuturePAF]

Nigeria is indicating it will invest billions into its rail industry. The dream of the trans African rail corridor (east-west) maybe a game changer for all trading partners of Africa. Nigeria alone linking up with this Ethiopian line will cut transport times and costs significantly, especially for landlocked countries of Africa.

 

[uhuru]

Nigeria is indicating it will invest billions into its rail industry. The dream of the trans African rail corridor (east-west) maybe a game changer for all trading partners of Africa. Nigeria alone linking up with this Ethiopian line will cut transport times and costs significantly, especially for landlocked countries of Africa.

That wont be possible. It is ambitious ask but this is a very major undertaking and the return on investment is nill.

We have a huge geographical variation that is a major challenge.

 

[FuturePAF]

That wont be possible. It is ambitious ask but this is a very major undertaking and the return on investment is nill.

We have a huge geographical variation that is a major challenge.

What kind of geographic variation do you think is the significant hinderances to making these projects feasible? And what kind of infrastructure do you think would work instead?

At least a Senegal to Lagos/Abuja route might be feasible, considering the population density.

 

[Knockingdoors]

Not bad

 

[uhuru]

What kind of geographic variation do you think is the significant hinderances to making these projects feasible? And what kind of infrastructure do you think would work instead?

At least a Senegal to Lagos/Abuja route might be feasible, considering the population density.

That is feasible but the challenge with Nigeria is bottomless corruption; they will build the railroad; then it will fall into total disrepair and in next 4 years - it will be abandoned. Senegal is far better. That is why all transport has fallen to the road traffic or air.

 

[siegecrossbow]

It's a real shame what happened to Ethiopia. They were well on their way to industrialization before the war.

 

[FuturePAF]

That is feasible but the challenge with Nigeria is bottomless corruption; they will build the railroad; then it will fall into total disrepair and in next 4 years - it will be abandoned. Senegal is far better. That is why all transport has fallen to the road traffic or air.

Perhaps a joint management contract with Chinese companies on a BOT model, so that railway management free of corruption becomes institutionalized as much as possible. Once Nigerians see an institution that works (and supports allot of other industries) for a couple decades, they maybe willing to allow it to stay outside of usual politics. Sounds naive, but Nigerians and Chinese need to create a model that is sustainable in the long term.

It's a real shame what happened to Ethiopia. They were well on their way to industrialization before the war.

There is still hope for Ethiopia because of its location. Ethiopian leadership will realize sooner or later that they will need to focus on economics if there is any hope of long term stability and rebuilding once the fighting stops.

 

[Beast]

Despite being all African. There are

Perhaps a joint management contract with Chinese companies on a BOT model, so that railway management free of corruption becomes institutionalized as much as possible. Once Nigerians see an institution that works (and supports allot of other industries) for a couple decades, they maybe willing to allow it to stay outside of usual politics. Sounds naive, but Nigerians and Chinese need to create a model that is sustainable in the long term.


There is still hope for Ethiopia because of its location. Ethiopian leadership will realize sooner or later that they will need to focus on economics if there is any hope of long term stability and rebuilding once the fighting stops.

Despite being all African, there is still so much division and ethnic issue. Too much variety is no good. A dominate must take over

 

[FuturePAF]

Despite being all African. There are

Despite being all African, there is still so much division and ethnic issue. Too much variety is no good. A dominate must take over

It’s not about “dominating”, it’s about making it in the business interest of the common people that the railways operate unmolested, economically, politically, and legally.

Also if the most profitable railways are funded by locals and more strategic railways are funded by China to connect the profitable lines on an east west alignment a trans-African line could be built from Senegal to Nigeria and on to Ethiopia and the port in Djibouti. China could restrict which companies ship over the lines they own/control under a BOT agreement and therefore earn back the investment through shipping charges; cheaper then truck based shipping. Chinese owned lines could also incentivize Chinese mining companies to operate in more parts of Africa.

For example a more modern Chinese build railway could easily outcompete the existing Dakar-Niger railway that in places has to run at only 20 kmph . In fact African countries have looked to China and the CRCC in 2015 to modernize this particular line.

 

[Beast]

It’s not about “dominating”, it’s about making it in the business interest of the common people that the railways operate unmolested, economically, politically, and legally.

Also if the most profitable railways are funded by locals and more strategic railways are funded by China to connect the profitable lines on an east west alignment a trans-African line could be built from Senegal to Nigeria and on to Ethiopia and the port in Djibouti. China could restrict which companies ship over the lines they own/control under a BOT agreement and therefore earn back the investment through shipping charges; cheaper then truck based shipping. Chinese owned lines could also incentivize Chinese mining companies to operate in more parts of Africa.

For example a more modern Chinese build railway could easily outcompete the existing Dakar-Niger railway that in places has to run at only 20 kmph . In fact African countries have looked to China and the CRCC in 2015 to modernize this particular line.

I am not just talking about railway only but simply division among ethnics of Ethiopia that would otherwise propel them to next level.