Study on Integration of Ethiopian Railway Network With Regional Countries (Especially with Djibouti)

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Date

2015-09

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Publisher

Addis Ababa University

Abstract

Although great improvements have been made in the expansion of road network, the country still suffers from limited connectivity, high cost and poor quality of services. Railway transportation is needed in the achievement of effective development, is an efficient, costeffective and it is environmental friendly transport system which will make the cost of exports more competitive and reduce those of imported goods. In addition to the low railway network connectivity in Ethiopia like other developing countries, the available one was not modern; has been low capacity and was insufficient to facilitate transit trade. In this study an attempt was made to show the significant of the regional integration through railway infrastructures and operation, specifically the Ethiopia – Djibouti rail project. In addition, to assess the economic viability and cost and benefit Analysis, to evaluate the socio- Environment impact assessment and Risk analysis of the new proposed Addis Ababa/ Sebeta – Djibouti Railway with standard gauge. To achieve such objectives, the research deals with literature review; data collection on the National Railway Network of Ethiopia; analysis and Result of the A.A/ Sebeta – Djibouti Railway project; and finally Conclusions and Recommendations. A.A/ Sebeta – Djibouti Railway project is 756km in length with 3 sections: Sebeta - Mieso (329.15km); Meiso – Dewele (344.85 km); and Dewele – Nagad (82 km). The first two sections are in the Ethiopian territory and the third is in Djibouti territory. This rail project is constructed with 15% local finance and 85% with foreign Loan. Total cost of the project is estimated at USD 4,037.35 million. The break‐even would be achieved in 4 years of operation; which will become 8 years upon considering the 4 years construction period. In this regard, the economic and financial internal rate of returns was estimated at 19% and 20% respectively. The Social and Environmental impact assessment is the main issue during the construction and operation of the project. Proper Policy, legislative and institutional frameworks are required for execution and implementation of the project. The adverse impacts of the project during construction and operations must be minimal, and can be mitigated through the use of best practices and appropriate technologies. Internal and external monitoring and audits will be conducted to ensure that standards and regulations are being followed. Furthermore, risk analysis should be considered before the construction to protect the project accidental risk. It should indicate possible solutions for expected challenges. In General, the project uses 1435mm standard gauge; National Railway Class II of China and 120km/h design speed as the main proposed technical standards. This Project is the most important international railway transport corridor of Ethiopia and most important hinterland collection and distribution corridors. The Construction of the Project is premise as a great significance for improvement of the transport systems of Ethiopia and Djibouti.

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Keywords

Railway Network, Ethiopia, Railway transportation, Ethiopia – Djibouti rail project

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