September 15, 2024
Addis Insight
Djibouti Confirms: Tajura Port to be Jointly Managed, Not Handed Over to Ethiopia
Djibouti has stated that it will not hand over Tajura Port to Ethiopia but will instead jointly manage it.
An agreement has been reached to develop a port where Ethiopia can import fuel.
The Minister of Foreign Affairs of Ethiopia has stated that the government of Djibouti did not propose to hand over or sell Tajura Port. Instead, they suggested jointly managing and using it.
Djiboutian Foreign Minister Mohamed Ali Youssef told the BBC that the Djibouti government proposed that Ethiopia use Tajura Port under Djibouti’s full management to ease tensions between Ethiopia and Somalia.
Further explaining, the foreign minister said, “We are not handing over Tajura Port to Ethiopia; we are jointly managing it.”
He added, “Tajura and other ports in Djibouti are national assets. Therefore, there is no reason for us to hand over any of them to another party.”
However, he mentioned that a national business strategy has been formulated to ensure these resources and assets are utilized to their full potential to benefit Djibouti.
“Currently, we are not getting the benefits we deserve from Tajura Port. It handles only one ship every two months. The government of Djibouti spent 60 million dollars to build this port and 110 million dollars to build the road from Tajura Port to Baloh state. The salaries of Tajura Port workers are paid from the revenue generated by Dollare Port. Is this correct? No,” he said.
As a result, President Ismail Omar Guelleh has directed that Tajura Port should generate income and become profitable by providing the necessary services.
Therefore, the proposal to the Ethiopian government is for Tajura Port to be managed and used jointly, not to be taken over or sold to Ethiopia.
He explained that if Ethiopia accepts this recommendation, Djibouti will benefit, similar to how Ethiopia and Djibouti have jointly built and are using the Ethio-Djibouti railway infrastructure.
“If Djibouti does not increase the port services provided to Ethiopia by expanding port options, we risk losing benefits from Ethiopia. Tomorrow, Asab Port might open, and Ethiopia could turn to Somaliland. Therefore, we must strive to meet Ethiopia’s port service needs,” said Minister Mohamed Ali Youssef.
The minister pointed out that the products available in the Ethiopian market include transportation and logistics costs, which are expensive.
From this perspective, Tajura Port is better than Djibouti Port (Dollare Port), which currently provides extensive services, and is closer and more viable for three Ethiopian regions (Tigray, Amhara, and Afar).
He explained that if Tajura Port cannot generate income by providing complete port services to Ethiopia, the debt incurred to build the port will be passed on to future generations.
In addition to Tajura Port, the minister mentioned that a medium-term plan has been made to develop Demerjug Port so Ethiopia can import oil products through this port and transport them directly by train.
Although we asked the maritime service official about the response to Djibouti’s proposal for Ethiopia to jointly manage and use Tajura Port, he indicated that the matter is handled at the government level or by the Ministry of Foreign Affairs. The Ministry of Foreign Affairs stated that information will be provided once a decision is made.
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