THE new US$4.2 billion Addis Ababa-Djibouti railway line, a 752-kilometre track linking Ethiopia's capital with the port of Djibouti, has been officially opened at Nagad railway station in Djibouti in the presence of Djibouti's President Ismail Omar Guelleh and Ethiopia's Prime Minister Hailemariam Desalegn.

Regular services transporting goods and passengers are expected to begin early this year. The new railway will cut cargo journey times between the port of Djibouti and Addis Ababa from three days by road to just 12 hours.

The railway project has been coupled with a $15 billion expansion programme to improve Djibouti's port facilities, and build new highways and airports in the country, reported American Journal of Transportation. The railway will also support the development of Djibouti's International Free Trade Zone (DIFTZ).

The railway is a major milestone for trade in the region. Currently, 90 per cent of Ethiopia's trade passes through Djibouti, accounting for 70 per cent of the overall activity at Djibouti's ports. Given projections that Africa's GDP will double by 2035 and the population will swell to 2.5 billion over the next 30 years the continent is in need of major new infrastructure links.

Chairman of the Djibouti Ports and Free Zones Authority (DPFZA), Aboubaker Omar Hadi, said: "From today, millions more Africans are now linked to Djibouti's world-class port facilities. Connecting Africa, Asia and Europe, Djibouti is at the heart of the world's trade routes, and we are proud to play a vital role in developing the region and wider continent."