Djibouti has launched the railway project to link the Red Sea nation to neighboring Ethiopia, according to official sources.
The new Djibouti-Ethiopia railway line was launched on Monday during the third meeting of the joint Djibouti-Ethiopia coordination commission on the project.
The project linking Djibouti to Addis Ababa through Ethiopia's Dire-Dawa town will cost the two countries 600 million U.S. dollars being loaned from the China EXIM Bank.
China Civil Engineering Construction Corporation (CCECC) won the tender for the construction of the infrastructure project.
"This railway line will facilitate access to different markets in the region, and will also link Djibouti to South Sudan through Ethiopia," Djibouti's Transport Minister Moussa Ahmed said.
Ethiopia's Transport Minister Workneh Gebeyehu said the new railway line will considerably change the two countries' socioeconomic landscape.
Because of the expected economic benefits, the Ethiopian minister appealed to all stakeholders to work hard and ensure the success of the project.
Djibouti's director for the Railways Company, Mahamamoud Robleh, said the construction will be completed within two years.
