Ministry of Transport-run national railway operator Ethiopian Railway Corporation (ERC) is making notable progress in overhauling the country’s railway transport system. It currently has eight major initiatives in progress, all aimed at boosting efficiency, improving connectivity and supporting economic development.

These include the Inodode Logistics Port development, the Mojo Dry Port development, the Addis Ababa-Djibouti railway line and the Bishoftu Railway Academy — key infrastructure projects designed to modernise Ethiopia’s rail network and reduce reliance on international expertise.

“The aim is to develop an efficient and integrated transport network that benefits the nation through collaboration with various government agencies,” says ERC finance deputy CEO Tewodros Asrat.

Key Projects
The Inodode Logistics Port is a pivotal initiative to enhance rail-based freight movement. Upon completion, it will serve as a key logistics hub, helping move goods efficiently across Ethiopia and to neighbouring nations, easing road congestion and cutting transport costs.

The Mojo Dry Port is being developed as a cargo handling and storage facility for freight transported by rail or road. It will simplify import and export processes by centralising inspections, customs procedures and transfers between different modes of transport.

Among the most important projects is the Addis Ababa-Djibouti railway line, a strategic link between landlocked Ethiopia and Djibouti’s ports. It plays a vital role in the country’s trade, offering quicker and more affordable freight transport.

Further, in the ERC’s efforts to strengthen regional transport links, it has completed a feasibility study for the Ethio-Sudan railway line. This project aims to support cross-border trade and improve transport efficiency between Ethiopia and Sudan, deepening regional integration.

Meanwhile, to overcome the shortage of trained professionals in the railway sector, the ERC is building the Bishoftu Railway Academy. This local institution will help train Ethiopian professionals domestically, reducing the need for internationally educated professionals.

“Previously, the corporation incurred significant foreign currency costs by sending personnel abroad for training. The ERC is now focusing on developing local training centres to build a skilled workforce within the country,” Asrat says.

According to ERC business development division deputy CEO and engineer Getu Gizaw, the Bishoftu Railway Academy is central to developing local resources, as it will offer specialised training and facilitate technology exchange with international partners.

He adds that the ERC is actively resolving outstanding issues regarding the Bishoftu Railway Academy’s construction. “At the same time, we’re expanding railway connections to ports and enhancing the overall network.”

Certification and PPPs
The ERC recently received a qualification certificate from the Ethiopian Construction Authority, enabling it to offer consulting and carry out construction work on infrastructure projects such as roads and bridges.

“This certification enables the corporation to take part in a wider range of infrastructure work, including road and structural projects within the scope of the upgraded railway network,” explains Gizaw.

This allows the ERC to handle more projects on its own, minimising the need for foreign contractors and helping keep project funding within the local economy.

Moreover, to support its growth strategy, the ERC — like South Africa’s Transnet — is rethinking its business approach. It is exploring public-private partnerships (PPPs) and broadening its funding sources to secure investment for major infrastructure developments.

The ERC is also focused on cutting down existing debt, aiming to ensure long-term financial health.

The ERC’s wide-ranging efforts — from new logistics hubs and training institutions to expanded rail links and regional projects — are poised to strengthen Ethiopia’s transport landscape.

By investing in local skills, improving infrastructure, and managing finances responsibly, the ERC says it is building a more connected and economically dynamic Ethiopia.