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284 views

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renewalshalom
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Ethio-Djibouti Railway Mid-Term Strategic Plan (2025–2027)

Executive Summary
The strategic plan outlines a vision for the Ethio-Djibouti Railway (EDR) for 2025-2027, focusing on
enhancing operational efficiency, safety, financial competitiveness, and customer satisfaction. Key
objectives include increasing freight capacity from 2 million tons to 6.2 million tons and raising annual
passenger numbers from 178,000 to 563,000. The plan anticipates total revenue of ETB 52.8 billion with
a budget of ETB 46.3 billion over the three years.
1. Introduction
1.1 Rationale
The plan is designed to address growing logistics demands and aims to improve operational efficiency,
adopt advanced technologies, and enhance customer experience.
1.2 Company Overview
EDR was established in 2017 through a bilateral agreement between Ethiopia and Djibouti, with an initial
capital of USD 500 million. The railway spans 756 km, connecting key locations from Ethiopia to the
Djibouti ports.
2. Environmental Scanning
2.1 Infrastructure Maintenance
 Three comprehensive maintenance centers and nine workshops.
 Increasing demand for maintenance due to track deterioration and infrastructure challenges.
2.2 Rolling Stocks Maintenance
 Current operational status of rolling stocks is suboptimal due to spare part shortages, affecting
both freight and passenger services.
2.3 Transport Operation
 Passenger and freight transport operations have shown significant growth, with an average annual
growth rate in freight volume of 19.2%.
3. Strategic Direction
3.1 Motto, Vision, and Mission
 Motto: "Connecting Business"
 Vision: To become the top logistics choice in the corridor by 2027.
 Mission: Provide reliable, efficient, and profitable railway transport services.
3.2 Core Values
 Integrity, Customer Centricity, Safety, Cost Efficiency.
3.3 Strategic Goals
1. Improve Operational Efficiency
o Increase cargo and passenger capacities and improve turnaround cycles.

2. Ensure Financial Competitiveness


o Generate substantial revenue growth and improve profit margins.

3. Enhance Human Capital


o Focus on employee retention and capacity building.

4. Community and Stakeholder Engagement


o Strengthen ties with stakeholders.

4. Initiatives and Implementation Strategies


The plan includes specific initiatives for each year (2025-2027) and outlines implementation strategies to
achieve the set goals.
5. Monitoring and Evaluation
A robust monitoring and evaluation framework will track key performance indicators (KPIs) to ensure
accountability and transparency.
6. Risk Management
Identifies potential risks and outlines strategies to mitigate them, focusing on operational, financial, and
safety concerns.
7. Programs and Projects
Details on various programs and projects that will be undertaken to support the strategic objectives.
8. Implementing Bodies
The plan will involve all departments of EDR, overseen by the Executive and Board of Directors.
9. Conclusion
The strategic plan aims to transform EDR into an efficient, financially stable entity capable of meeting
growing transportation demands, thereby contributing to the economic development of both Ethiopia and
Djibouti.
some possible questions that can be raised from the report:
General Questions:
1. What are the main goals of this study on the Ethio-Djibouti Railway (EDR)?
2. Why is the efficient movement of goods along the EDR vital for regional connectivity and
economic growth?
3. What are the key stations involved in the initial phase of the study and why were they chosen?
4. What are the primary challenges faced by the loading and unloading operations at these stations?
Specific to Stations:
1. What specific factors contribute to the inefficiencies at Adama Station?
2. How does Modjo Station benefit from its strategic location and what are its main challenges?
3. What infrastructure issues are present at Indode Station and how do they impact operations?
4. What unique challenges does the new Sebeta Station face in its early stages of operation?
Methodology:
1. What primary data collection methods were used in this study?
2. How was secondary data utilized to complement the findings from primary data?
3. What role does the Operations Control Center (OCC) play in coordinating loading and unloading
operations?
Results and Analysis:
1. What are the recommended standard times for loading and unloading at Adama, Modjo, and
Indode stations?
2. How do the recommended times compare to the current average loading and unloading times?
3. What are the specific recommendations for improving the efficiency of loading and unloading
operations?
Stakeholder Roles:
1. What is the role of the Operations Department in the loading and unloading process?
2. How does the Technical Department contribute to the maintenance and availability of equipment?
3. What initiatives is the IT Department undertaking to improve communication and system
functionality?
4. What challenges does the Last Mile Unit face and how can they be addressed?
5. How does the Planning Department plan to optimize loading and unloading operations in the
future?
Recommendations:
1. What specific measures are recommended to enhance communication between departments and
stakeholders?
2. What are the suggested improvements for maintenance and equipment management?
3. How can last-mile logistics be optimized to reduce delays?
4. What infrastructure improvements are needed at stations like Indode?
5. How can technology integration and system implementation improve operational efficiency?
6. What strategies are suggested for fostering collaboration with key stakeholders?
7. What are the key elements of the comprehensive strategic plan for the EDR?
Future Work:
1. What are the next steps in the study, particularly regarding the assessment of Diredawa and
Nagad stations?
2. How will the findings from this study be integrated into future operational planning and decision-
making processes?
3. What ongoing engagement with stakeholders is planned to ensure continuous improvement?
Significance of the Study:
1. How will establishing standardized timeframes impact the overall efficiency of the EDR?
2. In what ways will increased train rotation and strengthened collaboration benefit the railway
system?
3. What are the broader economic implications of improved operational efficiency for Ethiopia and
Djibouti?
These questions can help guide further discussion, analysis, and decision-making based on the findings
and recommendations presented in the report.

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