Addis Ababa – Prime Minister Abiy Ahmed has inaugurated the first phase of a major 60-hectare logistics expansion in Modjo, designed to resolve chronic trade bottlenecks, preserve foreign currency reserves, and accelerate Ethiopia’s integration into the African Continental Free Trade Area (AfCFTA).
The upgraded facility incorporates modern warehousing and cargo stations capable of processing up to 1 million 20-foot containers (TEUs) annually. A key economic benefit of the expansion is its capacity to handle the domestic packaging of dry bulk imports — a process previously reliant on foreign port services — thereby saving significant foreign exchange while generating local employment.
To overcome historic delays in freight handling, the centre has introduced Ethiopia’s first rail-mounted gantry crane. The infrastructure enables direct, high-speed container transfers between freight trains and the hub. The entire operation is managed through a digitised management system intended to streamline customs clearance and provide automated cargo tracking.
Beyond strengthening the primary Ethio-Djibouti trade corridor, the Modjo hub serves as a key transit node for the developing “DaSu” corridor, which aims to link Ethiopia’s logistics network directly with South Sudan and Uganda.
Writing on social media following the launch, Abiy described the project as a practical realization of Africa’s free trade ambitions. He emphasized that upgrading the nation’s logistics infrastructure to international standards represents a strategic breakthrough that will elevate Ethiopia’s position in global trade and drive regional economic integration.
