ADDIS ABABA, Jan. 14 (AGCNewsNet) – The Ethiopia-Djibouti Railway S.C. achieved profitability for the first time since its operational launch in 2018, CEO Takele Uma announced Monday following the company's 2024 performance evaluation.

"This achievement sets the stage for our upcoming three-year strategic plan aimed at transforming the company into a profitable venture," Takele stated on social media. "With a solid foundation of profitability now established, we are well-positioned to embark on a journey toward even greater successes in the future."

The milestone comes five months after Takele pledged to make the railway profitable within three years, unveiling a strategic plan and a new organizational framework to drive necessary changes.

In August 2024, Takele highlighted the railway's operational challenges, revealing that only 15 of 32 freight locomotives were functional, limiting the annual freight capacity to 2.4 million tons—just 38% of its potential 6.3 million tons.

Spanning over 750 kilometers, the railway links Addis Ababa to the port of Djibouti. Built with a $4 billion investment, 70% of the funding came from China Exim Bank, while Ethiopia and Djibouti covered the remainder.

Management of the railway transitioned in May 2024 from the China Railway Construction Corporation (CRCC) to the Ethiopian and Djiboutian governments. By September 2024, the railway began transporting livestock for export, marking a significant operational milestone.

This latest profitability announcement underscores the company's progress, laying the groundwork for an ambitious three-year transformation plan.

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