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Awash
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How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 17 Oct 2020, 01:01

How Djibouti is Maximizing its Strategic Position in Maritime Trade

BY BRIAN GICHERU KINYUA 10-15-2020 07:44:09

One of the stark distinctions between Djibouti and other African nations is its characteristic barrenness. Its natural resources are limited, and a tiny proportion of its land is arable. Coupled with a harsh climate, agriculture is almost inconceivable, and Djibouti has to import most of its food from foreign markets. These realities mean that the services sector commands Djibouti’s economy - especially services in shipping and logistics – and this limits production diversification, leading to over-dependence on foreign markets.

Despite these challenges, Djibouti’s strategic position at the connection of the Red Sea and the Gulf of Aden has given it an immense advantage in international maritime trade. Djibouti Port remains the most important asset that this small nation of about one million people has, and it powers Djibouti’s $4 billion city-state economy. Thus, Djibouti pegs its economic transformation on improving the competitiveness of its ports. This is evident in its ongoing $14 billion infrastructure expansion, whose large component is going into establishment of new ports and terminals across the country’s coastline.

The high headline growth rate of Djibouti’s major trading partner, Ethiopia, will see the country reap a relatively higher return on investment on port expansion as demand for export and import soars. According to estimates by World Bank, 85 percent of Djibouti port throughput is either going to or coming from Ethiopia. From 2010 to 2019, Ethiopia’s real GDP growth has averaged 9.5 percent - one of the highest rates in the world - and it’s expected to have a knock-on effect to Djibouti’s economy.

To this effect, Djibouti has crafted an ambitious national strategy towards its socio-economic transformation, dubbed Vision Djibouti 2035, which aims to position the country as a global trade, logistics and industrial hub. This centers on ports and intermodal infrastructure development to increase the size of the hinterland served in East Africa and the Horn of Africa. The key component of this strategy includes development of a network of specialized ports: one for containers, one for dry-bulk cargo and another for liquid bulk.

This specialization of ports is especially important given Africa’s reliance on commodity exports. Inadequate purpose-built bulk ports in Africa makes it difficult to compete in the world of bulk exports with the likes of Brazil and Australia, despite the mineral abundance in the continent. Djibouti so far has two operational bulk ports, Tadjourah and Ghoubet, specialized in potash and salt respectively. Tadjourah Port can handle 2000 tons of potash per hour while Ghoubet port can handle 5 million tons of salt annually, sourced from the world’s largest salt deposit at Lake Assal in Djibouti.

In addition, Djibouti’s capacity to handle liquid bulk destined for Ethiopia is severely constrained by the limitations of Horizon Djibouti Terminals, where oil storage facilities are concentrated. The port’s current storage capacity stands at 379,000 cubic meters, not enough to handle a throughput of refined products hitting more than 3.5 million cubic meters in recent years. In response to this operational deficit, Djibouti last month launched the construction of Damerjog Liquid Bulk port, which will have an annual throughput capacity of over 13 million tons. The construction is being undertaken by a Moroccan company, SOMAGEC, that specializes in port infrastructure. This is one of the phases of Djibouti Damerjog Industrial Park (DDIP) intended to ensure Djibouti’s industrial development. The rest include the ongoing construction of Djibouti Liquefied Natural Gas port, a $4 billion project consisting of an 800-km pipeline that will connect the gas extraction areas in Ethiopia’s Ogaden basin to the coast of Djibouti, as well as a gas liquefaction plant and export terminal. The plant is expected to be operational by the end of this year and have a capacity to export three million tonnes of natural gas per year. The export terminal will be able to handle LNG carriers with a capacity of up to 267,000 cubic metres.

Djibouti’s geographical position near world’s busiest shipping routes creates a strong imperative for China’s Belt and Road Economic Initiative, which explains colossal investments by China in Djibouti’s port facilities. This China-Djibouti nexus has created Africa’s largest free zone, the Djibouti International Free Trade zone (DIFTZ) and the world-class Port of Dolareh. So far, 90 local and multinational corporations have been registered by DIFTZ and an online B2B (business to business) transaction platform, Djimart.com, launched recently to support business operations in the Covid-19 context.

However, there are a few bottlenecks that could hinder Djibouti ports transformation into a hub - key among them its smaller hinterland access due to an over-reliance on serving Ethiopia, and (as a result) its lower liner connectivity.

Brian Gicheru Kinyua is a freelance writer based in Mombasa City, Kenya where he researches and writes on logistics and the African Blue Economy. 
https://www.maritime-executive.com/edit ... time-trade
Last edited by Awash on 17 Oct 2020, 05:34, edited 2 times in total.

Awash
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 17 Oct 2020, 05:24

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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Guest1 » 17 Oct 2020, 05:27

ጀቡቲ ትንጥዬ የፈረንሳይ አገር ነች!! ክክክክክክክክክክ

Awash
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 17 Oct 2020, 11:22

...Despite these challenges, Djibouti’s strategic position at the connection of the Red Sea and the Gulf of Aden has given it an immense advantage in international maritime trade. Djibouti Port remains the most important asset that this small nation of about one million people has, and it powers Djibouti’s $4 billion city-state economy. Thus, Djibouti pegs its economic transformation on improving the competitiveness of its ports. This is evident in its ongoing $14 billion infrastructure expansion, whose large component is going into establishment of new ports and terminals across the country’s coastline.

Awash
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 17 Oct 2020, 13:41

...The high headline growth rate of Djibouti’s major trading partner, Ethiopia, will see the country reap a relatively higher return on investment on port expansion as demand for export and import soars. According to estimates by World Bank, 85 percent of Djibouti port throughput is either going to or coming from Ethiopia. From 2010 to 2019, Ethiopia’s real GDP growth has averaged 9.5 percent - one of the highest rates in the world - and it’s expected to have a knock-on effect to Djibouti’s economy.

To this effect, Djibouti has crafted an ambitious national strategy towards its socio-economic transformation, dubbed Vision Djibouti 2035, which aims to position the country as a global trade, logistics and industrial hub. This centers on ports and intermodal infrastructure development to increase the size of the hinterland served in East Africa and the Horn of Africa. The key component of this strategy includes development of a network of specialized ports: one for containers, one for dry-bulk cargo and another for liquid bulk...

BAGAMIDOASS
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by BAGAMIDOASS » 17 Oct 2020, 17:12

What’s your point AMBETTAW😀
Are you sniffing Djiboutiass to get high or to make you feel un defeated Tigraway???

Deqi-Arawit
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Deqi-Arawit » 17 Oct 2020, 17:21

I am sure your agame arse is delighted anta Qondaf Qomal!

AbyssiniaLady
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by AbyssiniaLady » 17 Oct 2020, 19:26

Good for Djibouti and Good for Ethiopia.

Djibouti’s geographical location on the Bab el-Mandeb strait is central to key global trade routes across the Indian Ocean between Europe, the Middle East and Far East Asia Countries, This offers Djibouti a tremendous opportunity to grow into a maritime hub, Many African ports are generally poorly equipped and operated at low levels of productivity, However, Djibouti port is one of only a few African ports capable of handling the largest of the current generation of ships, Besides, Djibouti has proved itself to be a very reliable and trustworthy country.

A 2003 World Bank study found that most African landlocked countries are suffering due to their transit neighbours high levels of corruption, delay in customs clearance and theft of goods in ports, take shithole Kenya, for instance, Kenya ports authority managing director who is facing corruption charges has resigned in March 2020 after a wave of massive theft of more than 2,000 containers loaded with assorted items destined for Uganda and Rwanda at Mombasa port, Tanzania, Mozambique, Cameroon, Nigeria, Ghana etc are another good examples of corrupt coastal countries in Africa.

Landlocked Chad and the Central African Republic have threatened to abandon Cameroon port because of insecurity, delay in customs clearance, theft of goods in port and corruption, they say they are fed up and want to relocate to Cotonou port in Benin, another corrupt tiny country.

Anyway, Africa is a doomed continent but we are lucky to have a very reliable and trustworthy Djibouti and it's irreplaceable.

Awash
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 17 Oct 2020, 21:46

Deqi arayit and Aggammiddo,
Birds of the same feather fly together. Fesffass Agame. :lol: :mrgreen:
Last edited by Awash on 17 Oct 2020, 22:50, edited 1 time in total.

Awash
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 17 Oct 2020, 22:49

...This specialization of ports is especially important given Africa’s reliance on commodity exports. Inadequate purpose-built bulk ports in Africa makes it difficult to compete in the world of bulk exports with the likes of Brazil and Australia, despite the mineral abundance in the continent. Djibouti so far has two operational bulk ports, Tadjourah and Ghoubet, specialized in potash and salt respectively. Tadjourah Port can handle 2000 tons of potash per hour while Ghoubet port can handle 5 million tons of salt annually, sourced from the world’s largest salt deposit at Lake Assal in Djibouti.

In addition, Djibouti’s capacity to handle liquid bulk destined for Ethiopia is severely constrained by the limitations of Horizon Djibouti Terminals, where oil storage facilities are concentrated. The port’s current storage capacity stands at 379,000 cubic meters, not enough to handle a throughput of refined products hitting more than 3.5 million cubic meters in recent years. In response to this operational deficit, Djibouti last month launched the construction of Damerjog Liquid Bulk port, which will have an annual throughput capacity of over 13 million tons. The construction is being undertaken by a Moroccan company, SOMAGEC, that specializes in port infrastructure. This is one of the phases of Djibouti Damerjog Industrial Park (DDIP) intended to ensure Djibouti’s industrial development. The rest include the ongoing construction of Djibouti Liquefied Natural Gas port, a $4 billion project consisting of an 800-km pipeline that will connect the gas extraction areas in Ethiopia’s Ogaden basin to the coast of Djibouti, as well as a gas liquefaction plant and export terminal. The plant is expected to be operational by the end of this year and have a capacity to export three million tonnes of natural gas per year. The export terminal will be able to handle LNG carriers with a capacity of up to 267,000 cubic metres....

Deqi-Arawit
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Deqi-Arawit » 18 Oct 2020, 01:11

Awash wrote:
17 Oct 2020, 21:46
Deqi arayit and [deleted],
Birds of the same feather fly together. Fesffass Agame. :lol: :mrgreen:
Yeah.Anta Qomal Agame Where is the development when you need it most?



Why are the women looks like they were pulled out from a fox hole? You can send a thank you letter to the woyane democracy. Anta Tukay Agame

Awash
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 18 Oct 2020, 05:15

Deqi arayit,
Here is another of your fellow wedi40 who went back to his motherland. :lol: :lol: :mrgreen: :mrgreen:

Deqi-Arawit wrote:
18 Oct 2020, 01:11
Awash wrote:
17 Oct 2020, 21:46
Deqi arayit and [deleted],
Birds of the same feather fly together. Fesffass Agame. :lol: :mrgreen:
Yeah.Anta Qomal Agame Where is the development when you need it most?



Why are the women looks like they were pulled out from a fox hole? You can send a thank you letter to the woyane democracy. Anta Tukay Agame

Awash
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Posts: 29666
Joined: 07 Aug 2010, 00:35

Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 18 Oct 2020, 09:24

...Djibouti’s geographical position near world’s busiest shipping routes creates a strong imperative for China’s Belt and Road Economic Initiative, which explains colossal investments by China in Djibouti’s port facilities. This China-Djibouti nexus has created Africa’s largest free zone, the Djibouti International Free Trade zone (DIFTZ) and the world-class Port of Dolareh. So far, 90 local and multinational corporations have been registered by DIFTZ and an online B2B (business to business) transaction platform, Djimart.com, launched recently to support business operations in the Covid-19 context.

Awash
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by Awash » 19 Oct 2020, 13:55

...However, there are a few bottlenecks that could hinder Djibouti ports transformation into a hub - key among them its smaller hinterland access due to an over-reliance on serving Ethiopia, and (as a result) its lower liner connectivity.

AbyssiniaLady
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by AbyssiniaLady » 19 Oct 2020, 22:28

According to estimates by World Bank, 85 percent of Djibouti port throughput is either going to or coming from Ethiopia.
This is a blatant lies, I am a regular reader of World Bank website which is full of interesting articles news from Africa, The Kenyan author made up the percentage himself.

Djibouti ports are transshipment hub and China’s most important transhipment ports in Africa, The Port of Doraleh Multipurpose handles large container ships carrying food and drink, machinery, vehicles and other manufactured goods from the European Union Countries which are transhipped to Hong Kong & mainland China, Including tens of millions tonnes of stolen Somalia frozen seafoods.

There's no shipping line that can cover all ports around the world on a single service and therefore the Port of Djibouti doraleh multipurpose is an attractive port for transshipment due to its highly strategic intercontinental excellent location in the Red Sea.
However, there are a few bottlenecks that could hinder Djibouti ports transformation into a hub - key among them its smaller hinterland access due to an over-reliance on serving Ethiopia, and (as a result) its lower liner connectivity.
This Kenyan amateur author has no idea what he's talking about, Djibouti's hub ports ambitions goes way beyond politically unstable Ethiopia, the target is China, As of right now, everything's going as planned.
Last edited by AbyssiniaLady on 19 Oct 2020, 23:00, edited 1 time in total.

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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by AbyssiniaLady » 19 Oct 2020, 22:43

Port of Djibouti regeneration project launched.





Oct 20, 2020




The government of Djibouti through the Djibouti Ports and Free Zone Authority (DPFZA) has launched the Port of Djibouti regeneration project to turn the Historical Port of Djibouti into an international business district dubbed the East Africa International Special Business Zone.

In a statement, the DPFZA noted that the regeneration project will take place in six phases. The first will see the creation of the International Demonstration Area, a 220,500 square meter area that will include an exhibition Centre, including a Centre of excellence for maritime studies, as well as conference rooms, a hotel, and apartments.

The first phase will solely cost approximately US$ 153M and is due to be completed within a span of 60 months.


Continuation of Djibouti’s recent developments

Speaking at the inaugural ceremony, Aboubaker Omar Hadi the Chairman of DPFZA said that the project is a continuation of Djibouti’s recent developments and it assumes the Port-Park-City concept, which refers to the integration of ports, industrial parks, and services.


“Ports are a key node in the transportation of goods and services. This international free trade zone will bring added value to these goods and it will also facilitate the development of services, particularly in the financial sector,” explained Hadi.

Additionally, according to the DPFZA, the development will advance the East African country’s Vision 2035 and the national development strategy to maximize the country’s geostrategic position.


Development of port infrastructure in the country over the last decade.


Over the last decade, Djibouti has built new specialized port infrastructure to gradually distribute the activities of the historical Port which was initially built-in 1888. The new infrastructures include Doraleh Multipurpose Port. Launched in 2017, this port is one of the most modern ports in Africa and has the ability to provide accommodation for vessels with up to 100,000 DWT.

Other developments include the SGTD, a key transshipment hub connected to the Addis Ababa-Djibouti railway, and the Ports of Ghoubet and Tadjourah, which are mainly designed to handle salt and potash respectively.

https://constructionreviewonline.com/20 ... on-project

AbyssiniaLady
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Re: How Djibouti is Maximizing its Strategic Position in Maritime Trade

Post by AbyssiniaLady » 20 Oct 2020, 14:55

New African shipping line launches first service.


By Sam Chambers July 30, 2020

Djibouti Shipping Company, a new feeder line based in East Africa, has launched earlier this month its first container service. The company was created by a subsidiary of the Djibouti Port and Free Zone Authority.

The company acquired the geared 1,118 teu Asian Sun in March, renaming it Africa Sun. The president of Djibouti, Ismail Omar Guelleh, was on hand to see the ship ahead of its first voyage under its new name.

The maiden voyage departed for Bosasso, a small port located in the Puntland state of Somalia, last week, according to Alphaliner.

“Djibouti is served on a weekly basis by major carriers including Maersk, MSC, CMA CGM, COSCO-OOCL and PIL, while niche carriers, such as Linea Messina and Global Feeder Shipping, also call at the port on a regular basis. The port also acts as a gateway for land- locked Ethiopia and it is thus regularly served by the general cargo and multipurpose vessels of the Ethiopian Shipping Line,” Alphaliner explained in its latest weekly report.

The country has also been at the centre of a long simmering dispute with global terminal operator DP World over the rights to operate its main container terminal.

https://splash247.com/new-african-shipp ... st-service


Djibouti is absolutely on the right path to achieve the sustainable development goals!!

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