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Djibouti Seeks to Be East Africa's First Port
28 November 2006
All Africa

Addis Ababa, Nov 28, 2006

The tiny but strategic Red Sea state of Djibouti is working all out to become the Horn of Africa's main regional shipping terminal over the next few years, AFP reported from Djibouti.

The expansion of Doraleh port, about 10 kms (six miles) south of the capital, entails construction of a two-kms container jetty for deep-water anchorage, allowing an additional 1.5 million offloads a year, officials say.

Located at the southern end of the Red Sea on the Gulf of Aden, Djibouti, a former French colony is a key staging post between the Mediterranean and the Suez Canal shipping route through to the Indian Ocean.

It is also home to the largest overseas French military base and the only US military base in Africa.

The port, with four container terminals and 10 cranes, currently has the capacity to handle 10 million tones of general cargo and 400,000 container units per year and the upgrade will mean a significant boost in cargo traffic officials say.

In 2000 the government went into partnership with Dubai's DP World, one of the world's largest container port operators.

DP World says the new port will be operational at the end of 2008.

The Dubai government-controlled DP World became one of the world's top three container port operators after its 6.9-billion-dollar acquisition of Britain's Peninsular and Oriental Steam Navigation Co earlier this year.

The construction for 400 million dollars (312 million euros) of the new container terminal in Doraleh was launched officially last weekend, and with its extra offloads should knock Mombassa in Kenya off its perch.

The first phase of the upgrade, a 130-million-dollar (101-million-euro) oil terminal was launched in February, with a capacity of 370,000 m3 and 200 lorries a day.

The expansion is expected to improve access to the region, especially Africa's main trading bloc, the Common Market for Eastern and Southern Africa (COMESA), which counts 21 countries and 400 million inhabitants.

"Djibouti is the main entry point for COMESA," said its secretary general, Festus Mwencha. "In 10 or 15 years we hope that we will be able to go from Djibouti right to the Democratic Republic of Congo, we have plans for access, notably rail," he said.

"The port of Doraleh will allow Djibouti to have a new clientele: very big ships coming directly from Europe or Asia," carrying 10,000 to 12,000 containers," Thierry Marill, the Djibouti-based Secretary General of the Marill Establishments said.

"Raw materials can get to Djibouti, which will allow processing businesses to play their role, create jobs and which means in the medium term more industries," he said.

On top of the development of the port a duty-free zone is being set up, which should open the way for setting up new companies.

"Our ambition is to promote Djibouti as the gateway for investors to Africa and of exit for African producers towards other continents' markets," said Zeinab Kamil Ali, who manages the port authority and Djibouti as duty free zone.
 

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Damco Expands into the Horn of Africa
22 February 2010
Journal of Commerce Online

Damco, the combined logistics subsidiary of A.P. Moller-Maersk Group, opened an office in the Republic of Djibouti, which borders on the Red Sea and the Gulf of Aden and serves as a gateway to landlocked Ethiopia. Damco now has 32 offices in 26 countries south of the Sahara.

The country is a free trade zone and its position on the major East-West trade lane between Europe, the Middle East and Asia makes it a key transportation hub for northeast Africa.

The port city of Djibouti has modern shipping terminals whose primary source of income is trade with Ethiopia. The country is “very closely linked with the economies of the Middle East where Damco also has a strong presence,” said Nils Havsager, CEO of Damco Africa. “The opening of the Djibouti office follows on from Damco's expansion into Zimbabwe and Mozambique at the end of 2009 and re-affirms Damco's commitment to Africa as well as our strategy of expanding the company's presence in emerging markets."

"Damco will be launching a number of reefer solutions, providing a competitive mode of transport, supporting customers in Ethiopia,” said Mandeep Singh, head of Damco's Djibouti operations.
 

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DP World's Doraleh Port receives 96,660 TEU vessel Ivanhoe

INTERNATIONAL. Global marine terminal operator DP World’s recently-inaugurated Doraleh Container terminal at Djibouti received CMA-CGM’s Ivanhoe, with a nominal capacity of 9660 TEU (twenty foot equivalent container units).

With an overall length of 350 metres, width of 43 metres gross tonnage of more than 111,000 tonnes, the Ivanhoe is one of four Post-Panamax vessels completed late last year by Hyundai’s Ulsan shipyard for CMA CGM. The Ivanhoe, on her maiden voyage, berthed at Doraleh, her second port of call after DP World Southampton. Doraleh’s 18 metre draft makes it one of a very few ports in the region capable of handling a vessel of this size.

CMA-CGM, the French container transportation and shipping company, held a ceremony aboard the ship to celebrate its first call at Doraleh Container Terminal.

Anil Singh, Senior Vice President and Managing Director of DP World, Africa Region, said: “It is an honour to have CMA-CGM Ivanhoe call at our facility. Her visit to Doraleh affirms the port’s status as a regional hub, and in a wider context as a vital trading link between Europe, Africa and Asia. The recently-inaugurated deepwater port, now one of the largest and most modern terminals in Africa, is now very well equipped to handle large vessels such as CMA CGM Ivanhoe.”

Henry Delannoy, Senior Vice President Sales and Marketing. of CMA CGM said: ”Djibouti is a key African city with one of the most efficient and state of the art terminals in the region. CMA CGM has followed an aggressive growth and development plan in the region that focuses on creating new services in dynamic trade lanes with a modern, high performance fleet that helps maintain lower costs. We would like to thank DP World for their support in helping us facilitate our shipping and commercial activities in the region.”

Doraleh Container Terminal was officially opened last month with a total capacity of 1.2 million TEU annually. Capacity at the Terminal is set to grow over time in line with market demand to around 3 million TEU
Djibouti is East Africa's main port for the moment. Doraleh has been inaugurated a year ago and is the region's biggest and most technologically advanced port. But Kenya is now building a monster port at Lamu and seeks to be the region's first.
 

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Official opening of new DP World Djibouti oil terminal facility

United Arab Emirates: Monday, February 27 - 2006 at 10:03PRESS RELEASE
The President of Djibouti, His Excellency Ismail Omar Guelleh today officially opened a new state-of-the-art DP World-managed oil terminal facility in Djibouti, with a ceremony culminating in a reception on board the US Navy vessel USS Vicksburg for local and international dignitaries, including the US Ambassador, Marguerita D. Ragsdale and Vice Admiral Patrick Walsh.

Global terminal operator DP World has invested US$30 million in the US$100 million Doraleh Oil Terminal project and is contracted by the Djibouti Government to manage the 240,000 metric tonne facility overall, working closely with oil companies Shell, Mobil and Total, commercial and non-commercial customers including the US and French navies and manager of the oil terminal facility Horizon Terminals.

Construction of the more than one kilometre long causeway for the terminal began in February 2004, with the infrastructure largely completed in 2005. The terminal has been adding capabilities in the management of the full range of liquid fuels since then, culminating in the completion of the bunkering facility officially opened today that can handle two large vessels simultaneously.

At the ceremony, DP World Chairman Sultan Ahmed Bin Sulayem said the original plans for the oil terminal were for just half the current capacity. "The expansion was accelerated by the United States Navy who have been key drivers of the project and close partners with DP World and the Djibouti Government, along with the oil companies."

Commenting on DP World's involvement, Mr Bin Sulayem said,

"We invest for the long term," he said, "working in partnership with our customers to meet their needs today and tomorrow. Djibouti is an excellent example of that approach.

Mr Bin Sulayem pointed out that DP World was the largest contributor to Djibouti's economy.

"We have invested extensively outside the port, including in the freezone, the airport and in roads to facilitate the movement of fuel and goods. Dubai itself is also investing in other business in Djibouti including construction of a five star hotel and resort, recognising its potential as a tourist destination."


Mr Bin Sulayem added that security was vitally important in Djibouti and something the company was strongly focused on, working closely with customers such as the navy as well as the oil companies, enhancing security beyond that required by regulation.
 

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New Djibouti port is "all about Ethiopia"

Ethiopia, Djibouti’s biggest port client, expects a boom in its import and export activities as Djibouti gets ready to construct a new port at Tadjoura to handle the growing demands of the landlocked Horn of Africa country.
Djibouti Ports World has indicated that the new facilities have to be built in order to satisfy growing demands, especially due to the expansion of several economic sectors, particularly the agricultural sector.

Nonetheless, the new port will handle everything with the exception of containers and fuel that run through specialised terminals, such as the Doraleh Port.

The Tadjoura Port, according to Aden Ahmed Douale, chairman of the Djibouti Ports & Free Zones Authority, will handle general cargo, including livestock, fertilizers and grain.

The move is also to keep a competitive edge with respect to other harbours in the region. But above all, “It will be another opportunity for Ethiopia,” Capital, an Ethiopian online newspaper quotes the official as saying.

“It’s our biggest client and one of the largest countries on the African continent. More importantly, its economy is vastly growing. That type of country needs more than just one port” says Mr. Douale.

“It is all about Ethiopia,” Aden Ahmed Douale confirms. “In the near future, the country will count over a hundred million people. For such a huge customer, one port is not sufficient.”

Djibouti has attracted financial investments from several fellow members of the Arab League to develop the Tadjoura Port. Government institutions such as the Arab Fund, Kuwait Fund and Saudi Arabia Fund as well as the African Investment Bank (AIB) are expected to contribute to the project.
Yet another port being developed in the northern city of Tadjourah to satisfy the Ethiopian needs (huge landlocked country with over 80 million people).
 

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Djibouti
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Doraleh Port Extension, Approved

Djibouti to spend $330 mln on port expansion

Djibouti plans to spend $330 million on expanding its port, an exercise that is expected to be complete by 2014 and to increase the cargo throughput, its port authority said.
Djibouti's port, run by Dubai's DP World, is the lifeblood of its economy.

Djibouti serves as a port for its landlocked neighbour Ethiopia, which accounts for about 70 percent of traffic.

Aboubaker Omar Hadi, chairman of the Djibouti Ports and Free Zones Authority, said in a statement issued on Sunday that the money will go towards the construction of a quay and container handling equipment at its Doraleh terminal.

Hadi said they planned to launch a tender for the works in early 2012. Upon completion, the expanded port will be capable of handling 3 million containers a year from an estimated 800,000 at the end of fiscal 2011 and the one million containers by mid-2012.

Djibouti hosts France's largest military base in Africa plus a major U.S. base, and the port is used by foreign navies patrolling busy shipping lanes off the coast of Somalia to fight piracy.
source


Des investissements conséquents

Après la session ordinaire tenue lundi 03 octobre dernier, le conseil d’administration du terminal à conteneurs de Doraleh a pris la décision d’investir dans le renforcement de capacités opérationnelles de ce fleuron national pour un coût total de 330 millions de dollars US.

Le président de l’autorité des ports et zones franches de Djibouti, Aboubaker Omar Hadi, a rendu hier public un communiqué de presse sur les conclusions du conseil d’administration du terminal à conteneurs de Doraleh qui a siégé lundi 03 octobre dernier en session ordinaire.

Ainsi, les membres de cette instance exécutive ont pris bonne note de l’augmentation du trafic de transbordement qui atteindra la barre des 800.000 conteneurs au terme de l’exercice 2011 et celle d’un million de conteneurs vers le milieu de l’année 2012.

En vue de faire face à cette croissance du trafic et consolider la vocation de Djibouti de « hub régional », le conseil d’administration du terminal à conteneurs de Doraleh a pris la décision d’investir dans l’acquisition de deux portiques et de quatre portiques de parc d’une valeur de 30 millions de dollars US.

Le lancement aussi de la deuxième phase des travaux d’extension du terminal à conteneurs qui comprend la construction d’un quai de 950 mètres avec 18 mètres de profondeur, d’un terre plein de 50 hectares et des équipements de manutention pour un montant total de 300 millions de dollars US.

Le chantier d’envergure devrait aboutir en 2014 et porter la capacité opérationnelle du port de Doraleh à 3 millions de conteneurs.

Dans cette optique, les autorités compétentes prévoient de démarrer l’étude des sous sols du fond marin dans les semaines à venir et de procéder au lancement de l’appel d’offres au début de l’année 2012.
source

:cheers:
 

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Djibouti is planning to invest over USD 1.5 billion in the next three years on ports and maritime related business activities.


The Djibouti Ports and Free Zones Authority chairman, Aboubaker Omer Hadi, disclosed the intent of his agency last Friday at a reception held with clients and business partners at the Sheraton Addis.

Aboubaker said the major investment is going to be on a new ship repair and dry dock infrastructure that is going to cost 400 million dollars, while the second phase of the Doraleh Container Terminal will be constructed with an outlay of 330 million dollars with a capacity of three million TEU’s.

“The current Doraleh Container Terminal traffic is expected to reach its full capacity of handling 1.2 million TEU’s by the end of 2012 and we need to increase our capacity by constructing another terminal to handle the increasing traffic,” Aboubaker added. Djibouti Port handles over 90 percent of Ethiopia’s rapidly growing import

The 150 million dollar construction of the second phase of the Oil Terminal is also expected to start in 2012 aiming to increase the current capacity by 30 percent.

According to the chairman, the port’s activity of non-containerized traffic in 2011 increased by 60 percent reaching 4.5 million metric tons. In relation to containerized cargo service, traffic doubled to reach 800 thousand TEU compared to last year’s same time activity.

The petroleum traffic to Ethiopia also surged to 2.3 million cubic meters on average in 2010 and 2011. “This is a development supported by additional capacity created following the inauguration of the first phase of Doraleh Container Terminal,” Aboubaker said.

In addition the Djiboutian authorities are also set to expand the Port of Djibouti’s outer jetty berths and increase its depths from 12 to 13.75 meters with a total investment of 88.5 million dollars. This will provide the port with a capacity to accommodate six million tons of cargo a year in its first phase and three million extra tons in its second phase.

The authority also aspires to develop Tadjourah port at a cost of 85 million dollars. The port located 15 Km from Tadjourah and expected to be completed by 2013 will be mainly for bulk commodities like potash, explained Aboubaker.

Construction of the Port of Goubet will also consume an investment of 55 million dollars and is expected to be operational in 2013. It is a port primarily intended for the export of salt and will have the capacity of handling 4.5 million tons of traffic per year.

The authority has also a plan to set up a livestock port inside the existing Djibouti port at a cost of 20 million dollars with a capacity to serve two million heads of livestock annually. It also plans to develop a Free Zone, the Jaban Us, in PK12 at a cost of 30 million dollars, and expects to launch its study in 2012.

The coming three years will now be dedicated to the development of the Ports and Free Zones with a total outlay of 1.5 billion dollars, announced Aboubaker Omar Hadi, the newly appointed head of Djibouti Ports and Free Zones Authority.

Aboubaker, a man in his fifties who previously worked at the Port of Lagos in Nigeria, succeeded Aden Ahmed Doualeh in July 2011. With a rich career in the field of transport and port affairs, particularly with many qualities such as leadership and flexibility, he is considered the right person to take the authority to a higher level. Aboubaker has had a thirty-year career in the port of Djibouti, where he made his debut in the early 80’s.

In his speech Aboubaker noted that his office is in discussion with the ministries of transport and customs authority of South Sudan, Ethiopia and Djibouti so as to finalize the transit agreement and pave the way for South Sudan cargo to transit through Ethiopia and use the port of Djibouti as its first port. He explained the road has been completed on the Ethiopian side and is well in progress in South Sudan. But, he said, for the short and medium term the options will be the waterways from Malakal to Juba and Wau using multimodal roads and barges.

The Djibouti Ports & Free Zones Authority is the governing authority that sets the rules, directives and overarching principles for the smooth and efficient running of the current and future ports; as well as free zones, in Djibouti.

As of July 1, 2011 the management contract between DP World and the Djibouti Ports & Free Zones Authority come to an end, and the general cargo has since been handled by the authority. In June 2000, the government of Djibouti and DPWorld signed a 20 year contract to manage the Port of Djibouti facilities which were later extended. During that period of cooperation, the plan to construct a new port emerged in November 2006, and the cooperation evolved into a venture on Doraleh Port also to be managed by DPWorld. The Doraleh Port includes a container and an oil terminal which was a 450 million dollar venture where the government of Djibouti gets two third and DPWorld one third of the revenue from the port.
source
 

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Djibouti Aspires to Build Largest Ship Maintenance Yard for Region

The administration of Ismael Omar Guelleh in Djibouti has plans to build what will be the largest ship maintenance yard for East Africa and on the Red Sea corridor at a projected cost of 400 million dollars. Yet, experts in charge of developing the project have to choose the site for the project between the north coast of Djibouti (around Tajourah) and the country’s south coast, around Damerjog.

Water depth, wind level and geographical protection are factors in determining where the shipyard will be erected, according to Aboubaker Omar Hadi, chairman of the Djibouti Ports & Free Zones Authority.

“Otherwise, you will have to build a very expensive facility for a water break,” he told Fortune.

With the desire to incorporate dry dock and lift system models, the ship maintenance yard will be the ninth on the continent and the second on the East African coast, next to the 70-year old African Marine & General Engineering Co Ltd of Kenya. However, Djibouti’s shipyard will have the capacity to repair ships with 50,000dwt (dead weight), while its contender in Mombassa handles only up to 12,000dwt.

“We have wanted to build this yard for the past five years,” Aboubaker told Fortune.

Djibouti is at the heart of the Europe-Far East sea route, the second of the three largest routes in the world, apart from the Pacific and North Atlantic routes. An average of 90 large and medium size vessels, operated by liners such as Maersk and MSE, sail on this route, carrying around six million units of containers a year. This is projected to grow by an annual rate of 10pc.

The country wants to claim 50pc of this annual traffic in transhipment container logistics, thus committing, in the next three years, a 1.54 billion-dollar investment in expanding its existing port facilities and building new ones, according to Aboubaker, who was here in Addis Abeba for two days late last week.

He came here to promote these projects, including the creation of a new free zone, Jaban-As Free Zone, on a 57ht plot, 12km west of Djibouti Town. It will cost an estimated 30 million dollars, Aboubaker disclosed.

The government of Djibouti has plans to launch the second phase of the Doraleh Port development at a cost of 330 million dollars and convert the old Djibouti Port to a general cargo facility, at a projected cost of 88.5 million dollars, while expanding the newly built oil terminal at the Port of Doraleh at a cost of 150 million dollars, upgrading the facility’s storage capacity by 30pc.

There are also three plans on the drawing board to build brand new ports, including a livestock port, handing two million head, annually, in the south of Djibouti at a projected cost of 50 million dollars; in Goubet (the central part of Djibouti) to support a 4.5 million-tonne salt export, which could cost 55 million dollars; and the Port of Tajourah, one of the closest sea gates to landlocked Ethiopia, to be built at a projected cost of 85 million dollars.

The Port of Tajourah is designed to facilitate a prospective annual export of 4.5 million tonnes of potash from Ethiopia. The Ethiopian government has granted a concession over a 481sqkm area in the Danakil Depression, Afar Regional State, to the Ethiopian Potash Corp, a Canadian firm based in Toronto, which began drilling in May 2011. This extreme north-eastern part of the country contains a reserve of 128 million tonnes of the resource at 21pc potash component, geologists believe.

Both governments have contracted out road building projects from the quarry to the port. The Ethiopian part is constructed by the Defence Construction Enterprise.

“We have mobilised close to 60pc of the financing to pay for all these projects,” Aboubaker told Fortune.

The financing to pay for the construction of the shipyard, which is still under development, comes partly from the Djiboutian government and half from private investors in Europe and India. Their identities, however, remain confidential, and Aboubaker declined to disclose them.

However, the final deal is due by February 2012, and the launching of construction after three months, according to Aboubaker. The design and feasibility studies to justify the project are developed by one of the partners, which is a European company.
source
 

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No more world war !!!
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Good news, but if really want to be east Africa first port, the country called somali must be stable first and wipe out all the pirate.
 

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Discussion Starter · #11 ·
Djibouti Files Arbitration Against DP World Over Alleged Corruption in Port Deal
Government Says It Has Rescinded Concession to Run Africa's Largest Port
9 July 2014
The Wall Street Journal

DUBAI—The government of Djibouti has filed an arbitration case in London against Dubai's DP World, alleging the global ports operator paid bribes to secure a concession to run the Doraleh Container Terminal in 2000.

The Djibouti government said in an emailed statement that it rescinded DP World's 20-year concession and launched the case before the London Court of International Arbitration after out-of-court negotiations broke down.

DP World rejected the allegations, saying in a statement that it was "disappointed" in the government's decision to take legal action after 14 years of cooperation on the development and operation of the port, which opened in 2008.

The port is Africa's largest container terminal and Djibouti's biggest employer.

DP World, which operates more than 65 ports around the world, mostly in emerging markets, said it would continue to manage the Doraleh terminal pending the arbitration decision.

"We reject the allegations made and will vigorously defend our position during the arbitration procedure," DP World said.

Djibouti said the case sprang from an investigation of Abdourahman Boreh, the former chairman of the Djibouti Ports and Free Zones Authority.

The government has launched numerous legal actions against the Dubai-based Mr. Boreh in recent years and obtained a global freezing order on his assets.

The government has alleged that he misused his government position to gain personal advantage. One major case is scheduled to go to trial in London next year.

Mr. Boreh couldn't be reached for comment, but has previously denied allegations against him.

Djibouti claimed in its statement that it uncovered evidence "indicating that DP World paid bribes and gave other financial incentives to Mr. Boreh while he was negotiating the Doraleh Container Terminal concession agreement with DP World, as well as afterwards."

The bribes, the Djibouti government alleged, were made through consultancy agreements and foreign shell companies.

"Although the government of Djibouti sought to resolve the matter through direct discussions, negotiations have now broken down, leaving Djibouti with no choice but to request arbitration to declare the concession agreement and related project documents rescinded for illegality and corruption," the government's statement said.
 

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Discussion Starter · #12 ·
Ethiopia bets on clothes to fashion industrial future
Nov 21, 2017
Excerpt

KOMBOLCHA, Ethiopia, Nov 21 (Reuters) - Checkered shirts for American chain Gap. Slate leggings for Swedish store H&M. Twill shorts for Germany’s Tchibo. They are among a growing list of clothes being stitched together for big brands in Ethiopia.

As labour, raw material and tax costs rise in China - the world’s dominant textiles producer - the Horn of Africa country is scrambling to offer a cheaper alternative, and go up against established low-cost garment makers like Bangladesh and Vietnam.

It is still early days, and most of the clothing companies to source production in Ethiopia are testing the waters with small volumes. But the government is working hard to attract their business with tax breaks, subsidies and cheap loans. The landlocked nation is also about to open the final stretch of a 700 km (450-mile) electric railway to Djibouti’s coast.

This is part of a drive to turn a nation that is among the poorest in Africa into a manufacturing centre that is no longer held hostage to fickle weather patterns which periodically devastate the agrarian economy and leave its people hungry.

There has been some progress; foreign investment in the textile industry has risen from 4.5 billion birr ($166.5 million) in 2013/14 to 36.8 billion in 2016/17, the Ethiopian Investment Commission, a government agency, told Reuters.

“This is a huge success,” Arkebe Oqubay, a prime ministerial adviser directing the industrialisation drive, said during the inauguration of an industry park in the northern Ethiopian town of Kombolcha this summer. “The challenge now is to bring the world’s biggest companies into the country.”

Some have already arrived, most of them sourcing some production locally, like Gap and H&M, but a few building factories themselves.

Those to set up factories this year include U.S. fashion giant PVH, whose brands include Calvin Klein and Tommy Hilfiger; Dubai-based Velocity Apparelz Companies, which supplies Levi‘s, Zara and Under Armour; and China’s Jiangsu Sunshine Group, whose customers include Giorgio Armani and Hugo Boss.

French retailer Decathlon and over 150 companies from China and India will begin sourcing production from Ethiopia soon, said the investment commission.

However, while Ethiopia is moving faster than its continental rivals, there is a long road ahead. Logistical, bureaucratic and cotton-quality problems are threatening its ambitions and there are no guarantees it will ever be able to compete with the big global players.

The gulf in textiles exports is huge; Ethiopia’s totalled about $115 million in 2015, against Vietnam’s $27 billion, Bangladesh’s $28 billion and China’s $273 billion, according to the World Bank’s latest figures.

Ethiopia’s fledgling sector can ill afford the kind of working conditions scandals that have dogged the low-cost garment industry elsewhere, and officials said they were sending representatives to Asia to learn best practices.

Ethiopia’s road link with the port in Djibouti is outdated and congested in many parts and, together with the limited capacity and dense bureaucracy of its customs service, slows companies’ supply chains. This is undermining the benefits of being closer to European markets than most of its Asian rivals.

It takes up to 44 days from the time a clothing consignment leaves the factory to when it reaches buyers in Europe, compared to an average 28 days in Bangladesh and 21 days in China, according to a report from the Ethiopian Textile Development Institute compiled for investors this year.

This drives up costs. It costs up to $1,870 to export a 40-foot container, compared with $1,290 in Bangladesh and $679 in Vietnam, according to an internal report compiled by a major European clothes retailer and seen by Reuters.

However officials say the $4 billion electric railway between Addis Ababa and the Red Sea, to be inaugurated in the coming weeks, will reduce the transit time to the Port of Djibouti from 2-3 days to eight hours.
 

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Discussion Starter · #13 ·
Nov 14, 2018
U.S. senators alarmed if China gets control of Djibouti port
Excerpt

WASHINGTON (Reuters) - Two prominent U.S. senators expressed alarm on Tuesday about the military and political consequences if China gains control of a port terminal in Djibouti, and said they were concerned it could further boost Beijing’s influence in East Africa.

In a letter to Secretary of State Mike Pompeo and Secretary of Defense Jim Mattis, Republican Senator Marco Rubio and Democratic Senator Chris ***** said they were concerned about Djibouti’s termination of a contract for the Doraleh Container Terminal with United Arab Emirates-based DP World in February and the nationalization of the port in September.

Reports that Djibouti, heavily indebted to Beijing, would likely cede the port’s operations to a Chinese state-owned enterprise were “even more alarming,” they said.

The letter was the latest in a series of efforts by members of Congress who want to counter China’s growing international influence, which they see as a threat to U.S. economic and security interests.

Trump has been focusing on the economic threat from China and has brought the two countries to the brink of a trade war, but many lawmakers want to ensure the administration also treats the country as a security threat.

A tiny nation strategically located at the entrance to the Red Sea on the route to the Suez Canal, Djibouti became home to China’s first overseas military base last year. A U.S. base located just miles away stages operations against Islamic State, al Qaeda and other militant groups.

Rubio and ***** sent Tuesday’s letter as lawmakers returned to the Capitol for the first time in several weeks after congressional elections on Nov. 6.

Asked for comment, a Pentagon spokesman said the Defense Department welcomed infrastructure and other investment that could benefit the region, but added “countries should be wary of piling on monumental debt.”

A State Department spokesman had no immediate response.

The Senate last month passed legislation overhauling the way the federal government lends money for foreign development, in a shift meant largely as a response to Chinese influence.

More : https://www.reuters.com/article/us-...a-gets-control-of-djibouti-port-idUSKCN1NI2YM
 

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Discussion Starter · #14 ·
April 4, 2019
London court orders Djibouti to pay $385 million for exclusivity breach: UAE news agency

DUBAI (Reuters) - The United Arab Emirates said on Thursday that the London Court of International Arbitration had ordered Djibouti to pay Doraleh Container Terminal (DCT), partially owned by DP World, $385 million plus interest for a breach of exclusivity.

UAE state news agency WAM said that the court had found that Djibouti had breached DCT’s exclusivity rights by developing new container port opportunities with China Merchants, a Hong Kong-based port operator.

The government of Djibouti seized the Doraleh Container Terminal from DP World in February over a dispute dating back to at least 2012.
 

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Discussion Starter · #15 ·
DP World chairman says Djibouti dispute hurt company's ability to borrow
Excerpt

KIGALI, Oct 21 (Reuters) - Global ports operator DP World has struggled to borrow from banks to finance new investments since a port it partially owns in Djibouti was seized by the government there in 2018, its chairman said on Monday.

"We are investing but it is costing us more. That’s the damage," DP World Chairman Sultan Ahmed bin Sulayem told Reuters in Rwanda's capital Kigali, where the company opened a $35 million logistics platform on Monday.

"Fewer banks will lend us money today," he said, without giving further details. "Every bank that will lend you money will say, 'What if the country you invest in will do like Djibouti?' So Djibouti put a...bad precedent.”

The government of Djibouti seized the Doraleh Container Terminal from Dubai government-controlled DP World in February 2018 over a dispute dating back to at least 2012.

DP World called the seizure illegal, and the London Court of International Arbitration ruled in August 2018 that the company's contract in Djibouti was valid and binding.

Sulayem said the company is continuing to operate legally in Djibouti, although the government has claimed that the company's operations have ceased.

More : https://www.reuters.com/article/us-...hurt-companys-ability-to-borrow-idUSKBN1X123F
 

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China Merchants signs US$350 million deal for Shekou-style revamp of Djibouti port
South China Morning Post Excerpt

China’s biggest port operator has moved to consolidate its foothold in Djibouti after it agreed a financing deal with the East African nation to turn its Port of Djibouti into an international business hub.

China Merchants Group signed the US$350 million investment deal with state-owned company Great Horn Investment Holding on December 29, paving the way for the revamp of the port, which is more than a century old.

Located in Djibouti City, the US$3 billion project is to be modelled on the southern Chinese port of Shekou in Shenzhen that is integrated with a free-trade zone and business centre. State-controlled China Merchants played a key role in Shekou’s development.

More : China Merchants signs deal for Shekou-style revamp of Djibouti port
 
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