Remarks by Amb Tan Jian at EDR Development Strategy and

Freight Service Introduction Conference

(17 September, 2020, Labu Station, Ethiopia)

Excellency Mme. Dagmawit Moges, Minister of Transport,

Excellencies State Ministers,

Friends from the Business,

Friends from the Media,

Ladies and Gentlemen,

Thank you all for coming.

And a very good afternoon to all of you!

Today is 17 September, we are still in the first week of Ethiopian new year.

Happy New Year!

Melkam Addis Amet!

Congratulations on the convening of the Ethiopia Djibouti Railway Development Strategy and Freight Service Introduction Conference.

I wish to thank you, Ministers, State Ministers, Mr. Tilahun, CEO of EDR, Mr. Roba, General Manager of the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), and every one, for the important work done, for your valuable support and contribution.

As a departing ambassador (I am leaving in ten days time), today is my last public speech.

And I choose to sing my swan song at Labu Station, focusing on the Ethiopia Djibouti Railway.

This is a big deal.

I wish to start with this line:

The Ethiopia Djibouti Railway is the road to prosperity.

Why?

Because Ethiopia is a landlocked country.

There are 13 countries in the world with a population size larger than 100 million. You might have noticed that Ethiopia is the ONLY one with no coastline and seaport. This is the major bottleneck for Ethiopian development.

And 95% of its trade goes through Djibouti.

That’s why this rail, which will help turn the land-locked to land-linked.

It is not just a rail, but a lifeline also, an artery also.

Ethiopia has been striving to become the manufacturing hub of Africa.

It has built 15 industrial parks, out of which, nine are located along the rail.

This is called industrialization.

Dire Dawa was born because of the old Railway. It will boom because of this new Railway!

And many other cities, like Dire Dawa, will be born and boom.

This is called urbanization.

In addition, your might have noticed that the real estate is also booming in the areas close to the train stations. For example, villas have mushroomed near this Labu Station.

So, this rail is not just a transportation line, but also an economic belt, a development corridor.

It will boost economic development of Ethiopia as well as Djibouti, thus promoting sub-regional economic integration.

The rail is of strategic importance to Ethiopia.

The railway is a way to investment and trade.

It is a way to industrialization and urbanization.

It is a way to prosperity, a way to success.

Excellencies,

I have never doubted if the railway should be built or not. I still recall the promise made by the Minister of Transportation Mme Dagamawit to the Managing Contractor: Never worry about the cargo transportation demand, just make sure you can meet the need. Madam, your words are music to our ears.

For me, the real question is how it should be run, and run well.

How to make it profitable and sustainable?

How to bring out all the benefits and potentials of the rail?

This leads to my second point: the progress over the past two years and more; and the challenges.

Just now, General Manager Guo gave you a detailed account.

Let me pick out some highlights.

First, since 1st January 2018 when the commercial operation started, the railway has transported huge amount of goods between Ethiopia and Djibouti, imports and exports, food, fruits, fertilizer, etc. proving its value as an artery and lifeline for Ethiopia.

Rail transport is not only cost effective, but also environmental-friendly, and compatible with green development policy of Ethiopia and that advocated by the United Nations.

Also, rail transportation of fridge containers carrying flowers, vegetables and other agricultural products have started recently, thanks to the proactive and innovative approach of the managing contractor, and may friends

Second, big rise of revenue.

2019 witnessed the revenue increased by 45% over 2018.

And in the first half of 2020, the revenue jumped by 51%, compared with the same period of 2019.

What an achievement!

More importantly, I wish to bring to your attention what Mr. Guo mentioned just now: currently the daily cargo trains are 2 pairs; in November this year – only about two months to go, it will be increased to 4 pairs a day.

What does that mean?

Trains doubled, of course.

But the real significance is that, 4 pairs of cargo trains a day means the break-even point, means the rail won’t operate at a loss.

Then there will be profit. Thus a virtuous cycle may start.

I am sure this is not an empty promise. I know that so many colleagues have been working hard for a very long time for this to happen.

Thank you so much and waiting for you to make good on your promise.

Thirdly, after friendly consultations, Ethiopia and China reached agreement on rearranging the debt of the rail in 2018.

This has paved the way for the sustainable development of the rail.

A testament to the friendship and cooperation between our two sides.

There are other achievements, like the improvement of security situation, the development of human resources of Ethiopians, technology transfer, etc.

And I wish to emphasize that this progress has been made while the pandemic is spreading. The world economy has been brought to a halt; yet we have been defying the trend, developing and developing fast.

Not an easy task.

COVID-19 only proves the value of the railway.

Colleagues,

There is no denying that, in running the rail, there have been severe challenges.

First, power and water supply. This is an electrical rail, so, how could it be that there is no stable and reliable electricity supply? Also, water supply is a must.

Second, drop shipment. Yes, rail transportation is cheaper, and could be faster. A major weakness it that it is not door-to-door.

Third, supporting facilities are needed, like loading and unloading ones. If relevant oil facilities could be build, it would be a big lift to the development of rail.

Fourth, security along the railway, while improved, not yet solved.

This rail is not a close line. There are hundreds of level-crossings, some legal some illegal.

Railway facilities stolen, train attacks and interceptions, animal collision with the train, are not of a rare occurrence.

There are other challenges like overdue payment, railway legislation, coordination with and among government departments, etc.

We should redouble our efforts to solve these problems.

Excellencies and friends,

While thanking everyone for the contribution to the rail, I wish to take this opportunity to make the following requests and appeals.  

First, I wish to call on the government officials:

- to respond quickly and grant permit to the request of setting up the logistics company, so as to solve the door-to-door shipment issue;

- to help accelerate the building of oil transport facilities;

- to provide the payment that has been overdue;

- to give more input to the rail;

- to get support from other international partners.

Second, I wish to call on the managing contractor, including the two Chinese companies CCECC and CREC:

- to continue working hard on the running of the rail, to ensure first the safety, second the sustainability of the rail;

- to further partner with ESLES, and other transportation companies, to solve the issue of door-to-door shipment;

- to further develop human resources;

- to continue to transfer technology;

Third, I wish to call on the business community:

- to use the rail, as it could reduce the transportation time from 3-5 days to less than 20 hours, reduce the cost by one third;

- to invest in the railway and along the railway, help develop it into an economic corridor;

Fourth, I wish to assure you that, China will continue its support.

This is a railway owned by Ethiopia, 100 percent.

As your partner, China has been supporting you, in the building and running of the rail.

I will continue to make the case to my government and ask for continued support to the management and development of the rail.

This railway is a flagship project of the cooperation between our two sides.

This year marks the 50th anniversary of setting up diplomatic relations. Our two countries will commemorate and celebrate the anniversary in November.

It would be a gift if, by then, four pairs of cargo trains have been running.

Dear friends,

I see the momentum that has been building up since the start of its operation in early 2018. Transportation volume has been increasing; so is the revenue.

What’s more important is our growing confidence in the railway.

I see the moment of truth. The railway is of strategic importance to Ethiopia.

Its huge potentials are yet to be exploited. COVID-19 only proves that the rail is reliable and indispensable.

It will make a big difference!

It is a game-changer!

So, let’s seize the moment, seize the opportunity.

Let’s face the challenges and obstacles squarely, and solve them.

Let’s work harder to ensure that it is safe and sustainable.

Let’s make the rail from a line to a belt, an economic corridor.

Let’s make the Ethiopia Djibouti Railway a great success.

Wish you have a fruitful and productive conference today.

Thank you very much!

Betam Amesegenalew!