World Bank-Funded Modjo Green Logistics Centre Expansion Project Nears Completion, Set for Inauguration

Addis Ababa, October 2, 2025 (FMC) — Ethiopia’s Modjo Green Logistics Centre, a key project funded by the World Bank, is nearing completion and is set for inauguration soon, officials confirmed.

The expansion aims to double the centre’s capacity and significantly enhance container handling, strengthening Ethiopia’s logistics sector and regional trade connectivity.

During a visit to review the project’s progress, World Bank Vice President for Eastern and Southern Africa, Dr. Ndiamé Diop, praised the pace of implementation. “Logistics is a key component of competitiveness in any country, and this project really has the potential to reduce logistics costs for Ethiopian businesses so that containers can more efficiently reach ports of destination,” he told FMC.

He highlighted the project’s broader role in strengthening regional integration. “The vision is to use this hub to reach not just Djibouti, but many other ports, which will be very important for regional integration,” Dr. Diop said. “Behind competitiveness, you also have to see jobs — because when Ethiopian companies are stronger and expand, they create more jobs, which is really important for the country.”

For her part, World Bank Ethiopia Country Director Mariam Salim underscored that the facility will help unlock both domestic and regional opportunities. “This corridor from Modjo to Djibouti, with the rail line and all the infrastructure developments around it, is critical,” she said. “It supports not only Ethiopia’s substantial domestic market but also the wider regional economy.”

Ms. Salim stressed the importance of job creation and private sector involvement. “From construction to future operations, this facility means more employment. And with private operators expected to come in, the potential is even greater,” she said.

She added that the World Bank will continue to back Ethiopia’s logistics modernization while also advancing projects in energy access, agriculture value chains, and pharmaceuticals to help unlock further growth.

Ethiopian Maritime Authority Director General Abdulber Shemsu confirmed that most of the expansion works have been completed in line with World Bank requirements. He confirmed that preparations are underway for inauguration in the near future.

The project is part of Ethiopia’s broader logistics reform agenda, which includes a dedicated logistics council to oversee sector-wide improvements. Officials said the hub will facilitate private sector participation, promote regional integration, and contribute to job creation and economic development across the country. Once operational, the Modjo Green Logistics Centre is expected to transform the Ethiopia–Djibouti corridor and play a pivotal role in modernizing the nation’s logistics sector, enhancing efficiency and competitiveness for years to come.