Cargo railway of Ethiopia turns profitable after government takeover from China

Sep 17, 2025 #Ethiopia #Djibouti #RailwaySuccess
Ethiopia's state-run railway has achieved profitability on its cargo line for the first time s
Sep 17, 2025 #Ethiopia #Djibouti #RailwaySuccess
Ethiopia's state-run railway has achieved profitability on its cargo line for the first time since operations began in 2018, marking a significant turnaround after the government assumed control from Chinese contractors last year.
The line, which carries 90 percent of Ethiopia's exports to the port in Djibouti, has seen a fourfold increase in cargo volume to six million tonnes annually.
This success comes despite ongoing challenges, including electrical supply issues and the need for extensive repairs to locomotives.
The shift in management has raised questions about the effectiveness of Chinese investment and operations in African infrastructure projects, with Ethiopian officials citing improved training and technology management as key factors in the railway's newfound success.

Al Jazeera's Bernard Smith reports from Addis Ababa, Ethiopia.

 

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