Ethiopian Informer
ADDIS ABABA: November 6 (EI) — The Ethiopia-Djibouti Standard Gauge Railway Share Company (EDR) announced that it is yet to receive some 200 train wagons that are worth over 13 million US dollars.
Speaking to the Ethiopian Informer, Tilahun Sarka, EDR Director General, said that the stated 200 flat train wagons, which are said to be specific for the transportation of containers, are “highly needed to leverage the Ethiopia-Djibouti railway’s freight transportation service.”
According to the EDR director general, the Ethiopian government, in its ambition to promote technology transfer in the railway technology sector, had decided to award local companies about 30 to 35 percent of the train wagons that were required to effectively operate the Ethiopia-Djibouti Standard Gauge Railway.
Accordingly, the state-owned Metals and Engineering Corporation of Ethiopia (METEC) had been awarded a sub-contractor deal to provide about 35 percent of the total train wagons that were needed. METEC had also agreed with a Chinese firm, in which the Chinese firm contracted to supply the expected 200 flat wagons.
However, EDR is yet to receive the 200 flat wagons from Ethiopia’s state-owned metal and engineering firm mainly due to METEC’s failure to meet the expected sum of financial payment for the Chinese supplier as per the two companies’ contractual timeframe.
Tilahun, who recalled the Ethiopian government’s recent move in restructuring METEC’s structural arrangements, also lamented METEC’s engagement in the railway sector, as he emphasized ongoing difficulty in efforts to solve the challenge.
He also said that concerted efforts are currently underway to solve the problem and import the much-needed flat wagons, for which the Chinese firm is yet to receive its payment.
Noting the crucial importance of the 200 flat wagons that EDR is yet to receive as well as EDR’s ongoing difficulty to undertake its freight transportation service due to shortage of flat wagons, Tilahun also urged the Ethiopian government to support EDR’s efforts to obtain the 200 flat wagons, which he said would eventually help the company further expand its cargo volumes.
The Ethiopia-Djibouti Standard Gauge Railway, which was jointly built by two Chinese companies that are China Railway Group Ltd. (CREC) and the China Civil Engineering Construction Corporation (CCECC), had commenced both passenger and freight services back in January 2018.
According to Tilahun, the railway has been commendable in terms of facilitating Ethiopia’s import-export endeavors.
