Ethiopia has initiated its first pilot to transport diesel by rail, a move government officials say could reshape how the country handles strategic imports.Ethiopia has conducted its inaugural pilot project to transport fuel via rail, aiming to improve logistics efficiency.The trial utilized the Ethio-Djibouti Railway and specialized wagons to transport 120,000 liters of diesel.This initiative, directed by Prime Minister Abiy Ahmed, seeks to reduce costs, reliance on road transport, and logistical bottlenecks.Government and officials anticipate it may strengthen trade competitiveness and promote macroeconomic stability
At the Indode Railway Depot on the outskirts of Addis Ababa, a train loaded with 120,000 litres of diesel successfully completed the first trial run, activating long‑idle specialised wagons and tapping the under‑used potential of the Ethio‑Djibouti Railway.The pilot is the result of a directive from Prime Minister Abiy Ahmed aimed at cutting logistics costs, reducing reliance on truck haulage from the Djibouti port corridor, and easing pressure on Ethiopia’s stretched road network.Government sources said during a visit to Doraleh’s oil terminal that the prime minister ordered authorities to “immediately begin moving petroleum across the rail network,” highlighting efficiency, cost reduction, and national security as key motivators.
Officials from the Ethio‑Djibouti Railway Joint Stock Company (EDRC) and the National Oil Company (NOC) are overseeing the pilot, which marks a strategic pivot from decades of fuel transport by road.Ethiopia has historically relied on tanker trucks which has turned out to be a slow and costly process vulnerable to disruptions and high foreign‑exchange outflows, for fuel delivery from Djibouti to major consumption hubs.
Rail seen as critical economic leverTakele Uma Banti, CEO of Ethio‑Djibouti Railways, said the trial will help validate safety standards, logistical procedures, and the regulatory framework needed for broader rollout. Though not yet quantified by officials, analysts believe this shift could sharply lower transport costs and bolster the railway’s financial sustainability by anchoring it with high‑priority freight such as fuel and fertiliser.
If the pilot meets safety and performance benchmarks, the government plans to scale rail transport to include gasoline, jet fuel, and other petroleum products, a change officials describe as “not just logistics reform but a macroeconomic intervention” that could enhance supply predictability, curb inflationary pressures, and strengthen Ethiopia’s trade competitiveness.The trial aligns with Ethiopia’s broader transport master plan to expand multimodal freight corridors and transform hubs like Indode into integrated logistics centres, signalling a long‑term shift in how the country moves essential goods.
