New Djibouti Fuel Terminal Will Expand Rail Shipping
The Doraleh facility will help logistics operators shift petroleum supply chains from road tankers to rail by 2027.
Updated on Oct. 4, 2026 in Transportation
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African Terminal & Logistics Services is constructing a major petroleum terminal in Djibouti, with initial operations slated to begin in June 2027. The project aims to provide an alternative transport route for the 5 million tons of fuel currently moved to Ethiopia by road.
Why it matters
The terminal intends to alleviate systemic bottlenecks and reduce reliance on aging road infrastructure by enabling direct rail loading for fuel shipments. This shift follows persistent maintenance challenges at existing depots that have caused delivery delays.
The initial project phase will provide 288,000 cubic meters of storage capacity, eventually scaling to 750,000 cubic meters. This development addresses the supply chain needs of the Addis-Djibouti corridor, which handles over 95 percent of Ethiopia’s import-export trade volume.
The players
African Terminal & Logistics Services
A subsidiary of the Hayel Saeed Anam Group, this firm manages specialized infrastructure and logistics operations within the regional trade network.
Ethiopian Petroleum Supply Enterprise
The state entity responsible for the procurement and distribution of petroleum products in Ethiopia.
The details
The facility is designed to receive petroleum products by sea at Doraleh, storing them in tanks before dispatching them directly onto the rail link serving Ethiopia. By automating the loading process onto railcars, the terminal aims to bypass the volatility of current road-based transport methods. This integration is critical for maintaining fuel flow, especially as local distributors have faced capacity constraints, including maintenance-related tank closures as recently as July 2024.
Timeline
July 2024: EPSE reported maintenance issues at existing storage tanks.
September 27, 2026: Local media detailed the terminal project scope.
June 2027: Terminal operations are scheduled to begin.
Market Landscape
The terminal project extends the utility of the Ethiopia-Djibouti railway by integrating high-volume energy logistics into existing transit infrastructure. It follows a pattern of regional infrastructure investment aimed at securing the Addis-Djibouti corridor, which remains the primary artery for 95 percent of Ethiopia’s trade.
Operators in the fuel distribution or logistics space should monitor the 2027 project launch for potential shifts in regional transport pricing. Businesses currently reliant on road-based petroleum transit should evaluate their supply chain resilience against the coming rail-capacity increase.
The takeaway
Reliability in regional fuel supply chains is transitioning from road-dependent logistics to large-scale rail infrastructure. Logistics managers should track the 2027 operational timeline as a signal for potential capacity shifts in the Addis-Djibouti trade corridor.
Further reading
For more on the regional shifts affecting freight and logistics, see our Transportation section.
Source note: This article includes information reported by Ecofin Agency.
Live Poll
Should regional infrastructure projects prioritize shifting freight transport from road to rail?
