Djiboutian President Ismaïl Omar Guelleh and Ethiopian Prime Minister Abiy Ahmed are set to jointly lay the foundation stone today for a strategic petroleum product storage terminal at the Damerjog Industrial Park (DDIP).
Spearheaded through a partnership between the Dangote Group—led by African industrialist Aliko Dangote—and Ethiopian Investment Holdings (EIH), this landmark project marks a significant leap forward in economic integration and bilateral cooperation between the two nations.
Scheduled to launch on September 24, 2026, the ambitious infrastructure development spans approximately 80 hectares within the DDIP and represents an estimated investment of $160 million. Designed to bolster regional energy capabilities, the terminal will feature a storage capacity of 375,000 cubic meters and a transit capacity of up to 5 million tons of petroleum products per year.
The facility will connect directly to the Damerjog-Nagad railway line and link to the Damerjog Liquid Bulk Port (DLBP) via a common collector system, ensuring seamless, highly efficient logistics and distribution.
The terminal is expected to serve as a vital catalyst for economic growth on both sides of the border. For Djibouti, the project will stimulate local economic activity, create hundreds of jobs, unlock service and maintenance opportunities for domestic enterprises, and further elevate the nation’s status as a premier regional logistics and energy hub.
For landlocked Ethiopia, the initiative provides a crucial alternative to heavy road transport, drastically cutting logistics costs, easing highway congestion, shrinking its carbon footprint, and securing a reliable, long-term energy supply.
Looking beyond the immediate terminal, the development forms the cornerstone of a much larger vision: the 120-kilometer Damerjog multi-product pipeline. Connecting the storage facilities directly to the border town of Dawanleh in eastern Ethiopia, this cross-border pipeline will ensure a sustainable, uninterrupted flow of refined petroleum products to the Ethiopian market.
Bound by deep-rooted historical and cultural ties, Djibouti and Ethiopia continue to set a benchmark for successful economic integration in Africa, with this strategic energy backbone paving the way for future regional resource sharing and expanded international trade.