Ethiopia has completed its first trial run transporting petroleum products by rail, marking a potential shift in how the country handles fuel imports and other strategic supplies.
The pilot involved the movement of 120,000 litres of diesel using the Ethio-Djibouti Railway, a corridor that has remained underutilised for non-container freight.
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The test run departed from the Indode Railway Depot near Addis Ababa, using specialised wagons that had been idle for years.
Government officials say the initiative is part of a broader push to modernise logistics, cut transport costs, and reduce dependence on road haulage from Djibouti’s port, a route that has long been vulnerable to congestion, disruptions, and high operating expenses.
According to government sources, the pilot followed a directive from Prime Minister Abiy Ahmed, who has urged authorities to prioritise rail-based fuel transport as a matter of efficiency, cost control, and national security.
Ethiopia currently relies heavily on tanker trucks to move petroleum products inland, a system that has contributed to high foreign exchange outflows and pressure on the country’s road infrastructure.
The trial is being jointly overseen by the Ethio-Djibouti Railway Joint Stock Company and the National Oil Company. Officials describe it as a strategic departure from decades of road-dominated fuel logistics and a step toward diversifying freight movement across rail, road, and other transport modes.
Takele Uma Banti, chief executive of the Ethio-Djibouti Railway, said the pilot will help assess safety protocols, operational readiness, and regulatory requirements before any large-scale rollout.
Analysts note that anchoring rail operations with high-demand cargo such as fuel and fertiliser could significantly improve the railway’s commercial viability while lowering national logistics costs.
If the trial meets performance and safety benchmarks, authorities plan to expand rail transport to include gasoline, jet fuel, and other petroleum products.
Officials frame the move as more than a logistics upgrade, describing it as a macroeconomic tool that could improve supply reliability, reduce inflationary pressures linked to fuel distribution, and enhance Ethiopia’s trade competitiveness.
The pilot also aligns with Ethiopia’s long-term transport strategy, which aims to develop integrated logistics hubs and strengthen multimodal freight corridors.
Facilities such as the Indode depot are expected to play a central role in supporting the movement of essential goods as the country looks to modernise its supply chain infrastructure.
