Friends of the Rail Forum

ETHIOPIAN NETWORK

Posted on 28 May 2009 by Railways Africa Editor

Overseas Infrastructure Alliance Private Limited (OIA) of India is interested in Ethiopia’s 5,000km proposed national railway network - including the link to neighbouring Djibouti in the Horn of Africa – which is planned for construction within seven years. The Ethiopian Railway Corporation (ERC) has been tasked with building the envisaged network to connect most parts of the country. The ERC was established (with a paid up capital of $US750 million) in November 2007 under the supervision of the Ministry of Transport and Communications, after a decision by the Council of Ministers,

Among the objectives of the new railway are assistance to farmers keen to supply their produce to local and international markets and the enhancement of domestic marketing, by expanding access to commodities produced in remote areas.

Feasible rail routes are being identified by consultants working ERC. Areas where work is proceeding include Finote Selam, Bahir Dar, Wereta, Woldiya and Debre Birhan. Finote Selam and Woldia are seen as possible locations for “railway centres”.

OIA specialises in the design and management of development projects and infrastructure, and undertakes techno-feasibility studies for setting up railway networks, including electrification and gauge change. OIA general manager Austin Sequeira, accompanied by several of his staff, recently visited Ethiopia to discuss the project, and on 21 May called on President Ismail Omar Guelleh in Djibouti. The company signed a memorandum of understanding with the government of Djibouti for the preparation of a technical study on the route between Djibouti and Ethiopia.

Some months ago, Sultan Ahmed Bin Sulayem (chairman of Dubai World) signed a deal to rehabilitate the existing century-old line – a vital trade route between Addis Abeba and the port of Djibouti - at a cost of $US1 billion.