Ethiopia Launches First-Ever Rail Transport of Diesel in Major Logistics Breakthrough
Ethiopia has taken a significant step toward transforming its fuel supply chain after successfully completing its first pilot shipment of diesel by rail a milestone officials say could redefine how the country manages strategic imports and national logistics.
At the Indode Railway Depot on the outskirts of Addis Ababa, a freight train carrying 120,000 litres of diesel completed a successful trial run, marking the first time petroleum products have been transported via the country’s rail network. The operation reactivated long-idle specialised fuel wagons and unlocked the underutilised capacity of the Ethio-Djibouti Railway, a critical trade artery linking Ethiopia to the Port of Djibouti.
The pilot follows a directive from Prime Minister Abiy Ahmed, who has pushed for urgent reforms to cut logistics costs, reduce Ethiopia’s heavy dependence on road haulage, and ease pressure on the country’s overstretched highway network. During a recent visit to Doraleh’s oil terminal in Djibouti, the prime minister instructed authorities to immediately begin transporting petroleum products by rail, citing efficiency, cost savings, and national security as key priorities.
The trial is being jointly overseen by the Ethio-Djibouti Railway Joint Stock Company (EDRC) and the National Oil Company (NOC), representing a strategic shift after decades of reliance on tanker trucks to move fuel from Djibouti to major consumption centres across Ethiopia.
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For years, Ethiopia’s fuel imports have depended almost entirely on road transport a system widely viewed as slow, expensive, and vulnerable to supply disruptions, accidents, and high foreign-exchange outflows. Officials believe the move to rail could significantly reduce these risks while improving the reliability and predictability of fuel deliveries.
Rail Seen as a Critical Economic Lever
According to Takele Uma Banti, Chief Executive Officer of the Ethio-Djibouti Railway, the pilot will help validate safety standards, operational procedures, and the regulatory framework required for a full-scale rollout. While cost savings have not yet been officially quantified, analysts estimate that rail transport could sharply lower fuel logistics expenses and improve the railway’s financial sustainability by anchoring it with high-value, high-priority cargo such as fuel and fertiliser.
If the pilot meets safety and performance benchmarks, the government plans to expand rail transport to include gasoline, jet fuel, and other petroleum products. Officials describe the initiative as more than a logistics reform, calling it a macroeconomic intervention capable of stabilising supply chains, easing inflationary pressures, and strengthening Ethiopia’s trade competitiveness.
The initiative also aligns with Ethiopia’s broader transport and infrastructure master plan, which aims to develop multimodal freight corridors and transform hubs such as Indode into fully integrated logistics centres. Together, these efforts signal a long-term shift toward a more efficient, resilient, and cost-effective system for moving essential goods across the country.
