An Ethio-Djibouti joint company to manage the newly Built Railway

Ethiopia and Djibouti have reached an agreement to establish a joint company which will manage the newly built railway.

After months of negotiations between the two countries, the agreement that marked the joint-management of the electrified and environmentally friendly project was signed between Ethiopia's Minister of Transport, Ahmed Shide and his Djiboutian counterpart, Mohammed Abdulkadir Musa.

In the agreement it is stated that the company will be headquartered in Addis Ababa, and will have the responsibility to provide passengers, freight and maintenance services for the route. Since its launch in October, the Chinese built Ethio-Djibouti electric rail is working to create new manufacturing industries along the route, improving transport and further opening up landlocked Ethiopia.

In addition to minimizing the journey time between the two countries to under 10 hours, the environmental friendly Ethio-Djibouti Railway will also replace a diesel-powered Addis Ababa-Djibouti line. Ethiopia is seeking to have 5,000 km of new lines working across the country by 2020.

In October, during the launch of the project, Ethiopian Railways Corporation (ERC) communications official said, the close to 4 billion US dollar project was 70 percent financed by Chinese EXIM Bank with the remaining 30 percent financed by the Ethiopian government.

The construction was handled in two parts by China Railway Engineering Corporation (CREC) and China Civil Engineering Construction (CCECC).