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Home News International

Ethiopia and Kenya Gain Control of Major Rail Projects as China Transfers Operations

Mymoena Davids by Mymoena Davids
June 7, 2024
in International
Ethiopia and Kenya Gain Control of Major Rail Projects as China Transfers Operations

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China has completed the transfer of operational control for two major railway projects to the governments of Ethiopia, Djibouti, and Kenya. 

These rail links, integral to the Belt and Road Initiative, are now primarily managed by local authorities after substantial involvement from Chinese corporations in their development and initial operation phases.

The 467-mile Ethiopia-Djibouti Railway has been formally handed over to the Ethiopia-Djibouti Railway Share Company. 

The handover follows six years of stewardship by Chinese operators who facilitated the project from its inception.

“The railway is more than just tracks and locomotives. It is a symbol of cooperation, friendship, and shared aspirations,” stated Abdi Zenabi, executive director of the Ethio-Djibouti Railway.

Similarly, the Mombasa-Nairobi Standard Gauge Railway in Kenya has seen over 90% of its operations transferred to the Kenya Railways Corporation. 

Philip Mainga, managing director of Kenya Railways, confirmed the progressive handover, saying, “We are going to complete taking over operations from Afristar in 2025. All operations will be fully run and operated by Kenya Railways.”

Both rail projects are part of China’s broader strategy to foster development through the transfer of knowledge and expertise. Over 2,840 local workers have been trained in various railway operation and maintenance aspects. 

Despite the extensive training programs, Yunnan Chen, a research fellow at the Overseas Development Institute, observed that the handover is still somewhat restricted, pointing out that the transfer of operational skills has been selective.

Chen stated, “From my own experience, while training in operations and maintenance has been a dominant component, higher-level management, financial management, and ticketing was not something I saw in the training program.”

The Ethiopia-Djibouti line, constructed by a consortium including China Railway Engineering Corporation and China Civil Engineering and Construction Corporation, was financed predominantly by the China Eximbank, totaling $4.5 billion. 

Since its commercial inception in 2018, the railway has facilitated the movement of 680,000 passengers and high volumes of freight, bolstering economic activities between the landlocked Ethiopia and the strategic port of Djibouti.

Tags: Bilateral RelationsChinaEthiopiaGovernmentKenyaPoliticsRailtrain

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