Ethiopia Approves Galaan Multipurpose Port as New Multimodal Logistics Hub

The Ethiopian government has officially approved Galaan Multipurpose Port as a multimodal logistics hub destination, marking a significant breakthrough in the country's efforts to decongest its trade corridor and shift freight from road to rail. The approval was jointly granted by the Ministry of Transport and Logistics, the Ethiopian Maritime Authority, and the Ethiopian Customs Commission. This development allows multimodal transport operators to designate Galaan Multipurpose Port as the final destination for liner cargo.

The new arrangement enables shipments to move directly from the Port of Djibouti to Galaan by rail under a single through bill of lading and undergo customs clearance at the inland facility. Ethiopian Railway Corporation CEO Takele Uma welcomed the development, saying it would bring international shipping lines closer to the heart of Ethiopia's domestic market. The approval represents an important step towards strengthening Ethiopia's railway-based freight transportation system and improving the efficiency of the country's international trade logistics.

The Galaan Multipurpose Port, located in Indode, was previously known as Indode Multipurpose Port before being rebranded. Its new status as an officially approved multimodal destination allows shipping lines to issue a through bill of lading naming Galaan as the final destination rather than requiring cargo to be cleared at Djibouti before being transported inland. Under the arrangement, containers can be transported by rail from Djibouti to Galaan under customs control, with clearance taking place at the inland facility.

The through-bill-of-lading system is particularly important because it provides a single transport document covering the movement of cargo across different transportation stages. This can reduce administrative complications for importers and exporters while making it easier for shipping lines and freight forwarders to coordinate international shipments. The development also builds on Ethiopia's broader efforts to liberalize its multimodal logistics sector and expand private-sector participation.

For years, the state-owned Ethiopian Shipping and Logistics (ESL) enterprise dominated the country's multimodal cargo transportation market, accounting for approximately 90 percent of cargo handling. In March 2025, the Ethiopian Maritime Authority licensed several companies, including the Ethio-Djibouti Railway, to operate as multimodal transport operators. The licensing process was an important regulatory step towards expanding competition and enabling more companies to provide integrated freight transportation services.

The shift from road to rail is expected to help reduce the number of heavy trucks operating along the Djibouti-Addis Ababa corridor, potentially lowering road congestion, transportation costs, and pressure on road infrastructure. During the 2025/26 fiscal year, Djibouti handled 17.57 million metric tons of Ethiopian import and export cargo, accounting for 96.7 percent of the country's seaborne trade. The designation of Galaan as a multimodal logistics destination is expected to strengthen the role of railways in addressing these longstanding challenges.

The new system could offer significant operational advantages for importers and exporters. Containers discharged at Djibouti can be transported by rail to Galaan without requiring separate transport arrangements for each stage of the journey. Customs clearance at the inland facility could also bring goods closer to their final markets, particularly Addis Ababa and surrounding industrial and commercial centers. The Ethiopian Railway Corporation has welcomed the milestone and called on international shipping lines, freight forwarders, and multimodal transport operators to begin routing their cargo through Galaan Multipurpose Port.

Key points

• The approval of Galaan Multipurpose Port as a multimodal logistics hub is expected to reduce transit times and logistics costs, simplify customs procedures, and ease pressure on the road corridor connecting Djibouti and Addis Ababa.