{"id":91363,"date":"2025-12-29T00:00:00","date_gmt":"2025-12-29T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/?p=91363"},"modified":"2025-12-29T09:07:25","modified_gmt":"2025-12-29T09:07:25","slug":"egypt-establishes-foothold-in-ethiopias-trade-lifeline-through-djibouti-port-pacts-2","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/12\/29\/egypt-establishes-foothold-in-ethiopias-trade-lifeline-through-djibouti-port-pacts-2\/","title":{"rendered":"Egypt establishes foothold in Ethiopia\u2019s trade lifeline through Djibouti port pacts"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Egypt has secured a strategic foothold in Djibouti\u2019s maritime infrastructure<\/strong>, with state-owned and private firms signing a <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/MinistryTransportation\/posts\/pfbid0KcMkevP1Ts5CapSQzJ9LfugRUL3A8uYWVVmj4Hxu7JDtT64s3h9ZryWCf7BNMV9hl\" style=\"\" rel=\"noopener\">series of agreements<\/a> to develop a new multi-purpose terminal, a regional logistics hub, as well as a solar power plant in the East African nation. The agreements place the Holding Company for Maritime and Land Transport (HCMLT) and Elsewedy Electric at the center of Djibouti\u2019s logistics push.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Here is a quick rundown of what was signed:<\/strong><\/p>\n<ul>\n<li>State-owned <strong>HCMLT <\/strong>signed a terms of agreement to <strong>develop <\/strong>and <strong>operate <\/strong>a <strong>multipurpose terminal<\/strong> in collaboration with Djibouti\u2019s state-owned Green Horn Investment Holding; <\/li>\n<li><strong>Elsewedy Electric<\/strong> and <strong>HCMLT <\/strong>agreed to co-develop and launch a <strong>regional logistics <\/strong><strong>center<\/strong> inside Khor Ambado Freezone, which falls under the China-backed Djibouti International Freetrade Zone (DIFTZ);<\/li>\n<li><strong>Elsewedy Electric<\/strong> also signed a terms of agreement to build a <strong>solar power plant<\/strong> in <strong>Doraleh Port. <\/strong><\/li>\n<\/ul>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Why it matters<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The agreements give us a permanent foothold in the main sea lanes that landlocked <\/strong><strong>Ethiopia uses for trade<\/strong> and come just days after Ethiopia\u2019s ambitions of gaining access to the sea got a boost from Israel\u2019s recognition of Somaliland, where Ethiopia has the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2e71f2cc-ebd8-458b-9575-72bfacbd18ca\/who-will-sit-at-the-cabinet-table-in-2026%3F\" style=\"\" rel=\"noopener\">kernel of an agreement<\/a> that could give it a port. The Addis-Djibouti Corridor is responsible for <a target=\"_blank\" href=\"https:\/\/www.worldbank.org\/en\/news\/press-release\/2023\/07\/20\/addis-djibouti-corridor-to-get-major-upgrade-that-is-key-to-unlocking-connectivity-and-trade-for-ethiopia-afe-hoa\" style=\"\" rel=\"noopener\">95% of Ethiopia\u2019s trade<\/a>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>PLUS- These moves may be about more than just commercial logistics.<\/strong> Reports from <a target=\"_blank\" href=\"https:\/\/www.thenationalnews.com\/news\/mena\/2025\/12\/24\/egypt-increases-pressure-on-ethiopia-through-port-deals-with-eritrea-and-djibouti\/\" style=\"\" rel=\"noopener\">The<\/a><a target=\"_blank\" href=\"https:\/\/www.thenationalnews.com\/news\/mena\/2025\/12\/24\/egypt-increases-pressure-on-ethiopia-through-port-deals-with-eritrea-and-djibouti\/\" style=\"\" rel=\"noopener\">National<\/a> and regional observers suggest the infrastructure upgrades, which may also include assets at Eritrea\u2019s Assab port, feature berths specifically designed for Egyptian naval vessels, including submarines and helicopter carriers from the Southern Fleet. That would give the Egyptian Armed Forces a permanent resupply point at the Bab El Mandeb Strait.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The China factor: <\/strong>China\u2019s infrastructure investments in East Africa are the main reason why Djibouti is Ethiopia\u2019s main trade gateway. The <a target=\"_blank\" href=\"https:\/\/www.railway-technology.com\/news\/china-hands-over-ethiopia-djibouti-railway\/\" style=\"\" rel=\"noopener\">USD 4 bn Addis Ababa-Djibouti Railway<\/a> is the crown jewel of the Belt and Road Initiative in Africa, connecting Ethiopia\u2019s industrial heartland directly to the Doraleh Port through a 750km line.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>BACKGROUND: <\/strong>Egypt first announced the package of agreements <a target=\"_blank\" href=\"https:\/\/www.presidency.eg\/en\/%D9%82%D8%B3%D9%85-%D8%A7%D9%84%D8%A3%D8%AE%D8%A8%D8%A7%D8%B1\/%D8%A3%D8%AE%D8%A8%D8%A7%D8%B1-%D8%B1%D8%A6%D8%A7%D8%B3%D9%8A%D8%A9\/news23042025-5\/?utm_source=chatgpt.com\" style=\"\" rel=\"noopener\">in April<\/a>. A statement from Ittihadiya said we were also looking to work on the RN18 road corridor linking to Doraleh port.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egyptian state-private consortia will develop a new terminal, a logistics zone, and a solar plant on the Djibouti coast of the Gulf of Aden<\/p>\n","protected":false},"author":1,"featured_media":91364,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[966],"tags":[52,49,17,37,965],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-91363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-diplomacy","tag-egypt","tag-enterprise-logistics","tag-ports","tag-the-big-story-today","wpautop","entry"],"acf":{"mongo_id":"0ddf5e92-71ec-40a4-8545-1bbf1b9a9888","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/12\/1393.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt establishes foothold in Ethiopia\u2019s trade lifeline through Djibouti port pacts","related_issue":[91358],"teaser":"Egyptian state-private consortia will develop a new terminal, a logistics zone, and a solar plant on the Djibouti coast of the Gulf of Aden"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt establishes foothold in Ethiopia\u2019s trade lifeline through Djibouti port pacts - Logistics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/logistics\/2025\/12\/29\/egypt-establishes-foothold-in-ethiopias-trade-lifeline-through-djibouti-port-pacts-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt establishes 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