Trade and ports

Port of Djibouti and Doraleh (Dekada Jabuuti)

Djibouti's ports carry about 95 percent of Ethiopia's imports and are the main income of the Djiboutian economy. Beside the old port, Djibouti opened the Doraleh Container Terminal in 2009 and, in 2017, the $580 million Doraleh Multipurpose Port with China Merchants and new ports at Tadjourah and Ghoubet. In February 2018 the government took the container terminal from DP World; a London tribunal ruled in October 2025 that the seizure was unlawful, which Djibouti disputes.

Last checked 2026-11-12 9 sources Reading time: 3 min

The short version

Djibouti sits at the southern entrance of the Red Sea. Its ports are the main sea route for Ethiopia: Oxford Business Group reported in 2018 that they handle roughly 95 percent of Ethiopia's imports, and quoted a World Bank economist saying about 80 percent of Djibouti's transport activity comes from Ethiopia (Oxford Business Group, Djibouti 2018). TradeMark Africa gives about 95 percent of Ethiopia's imports and exports (TradeMark Africa). For the Djiboutian franc, see The Djiboutian franc. For Somali ports, see Somalia's seaports.

The ports

From Oxford Business Group's 2018 report (Oxford Business Group):

Port Opened Cost Capacity or size Notes
Doraleh Container Terminal 2009 928,000 TEU handled in 2017 Built and run by DP World until February 2018
Doraleh Multipurpose Port May 2017 $580 million 2 million tonnes of bulk cargo a year; stores 100,000 tonnes of fertiliser and 100,000 tonnes of grain Funded by the Djibouti Ports and Free Zones Authority and China Merchants
Tadjourah June 2017 5 million tonnes of minerals a year; two 455-metre quays For potash from Ethiopia's Afar and Tigray areas; financed by the Arab Fund and the Saudi Fund for Development
Ghoubet June 2017 $64 million 5 million tonnes of salt a year; 400-metre quay, 15-metre depth For salt from Lake Assal
Damerjog livestock port Planned for 2018; not started as of August 2018 $70 million 80,000 animals a month For livestock to Saudi Arabia, Egypt and Libya

The dispute with DP World

  • 2006: DP World received a 50-year concession for the Doraleh Container Terminal (Khaleej Times, 2 October 2025).
  • 23 February 2018: the government took control of the terminal. Djibouti cited mismanagement (Oxford Business Group; DP World / Dubai Media Office, 12 July 2021).
  • Earlier awards: a tribunal of the London Court of International Arbitration (LCIA) ordered Djibouti to pay the terminal company $385 million plus interest for breaking its exclusive rights by developing new container facilities with China Merchants (Khaleej Times).
  • October 2025: an LCIA tribunal found the seizure unlawful and the concession still valid, but awarded no damages against the state port company, Port de Djibouti SA, saying the harm came from the government directly. DP World says its awards against Djibouti total about $685 million, and that claims of about $1 billion against the government and China Merchants Port Holdings continue (Khaleej Times, 2 October 2025).
  • 30 September 2025: Djibouti issued a statement claiming victory and holding that it acted lawfully and that the dispute is over (same source).

Ethiopia and Somaliland

In March 2018, days after the Doraleh seizure, Ethiopia agreed to take a 19 percent share in DP World's port at Berbera in Somaliland (Khaleej Times). Ethiopia and Djibouti agreed in February 2026 to deepen cooperation at Doraleh (AllAfrica, 27 February 2026). See Port of Berbera.

Sources disagree

  • Ethiopia's share. Figures of about 95 percent are given for Ethiopia's imports (Oxford Business Group), for its imports and exports (TradeMark Africa), and for its inbound trade (Africanews), all measured differently (Africanews, 2 May 2018).
  • Cost of the multipurpose port. Oxford Business Group gives $580 million; other reports give $590 million (Engineering News, 23 June 2017).
  • The Doraleh seizure. DP World and the LCIA tribunals call it unlawful; the government of Djibouti says it acted lawfully (Khaleej Times, 2 October 2025).

Sources

  1. Oxford Business Group, Djibouti 2018 · oxfordbusinessgroup.com
  2. TradeMark Africa · trademarkafrica.com
  3. Khaleej Times, 2 October 2025 · khaleejtimes.com
  4. DP World / Dubai Media Office, 12 July 2021 · mediaoffice.ae
  5. Khaleej Times · khaleejtimes.com
  6. Khaleej Times · khaleejtimes.com
  7. AllAfrica, 27 February 2026 · allafrica.com
  8. Africanews, 2 May 2018 · africanews.com
  9. Engineering News, 23 June 2017 · engineeringnews.co.za

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