VOE News | May 31, 2026 — The Djibouti Ports and Free Zones Authority (DPFZA) has announced it is looking to neighboring Ethiopia to jumpstart construction on a crucial new energy hub. The maritime authority is currently awaiting Ethiopia’s formal financial participation in the upcoming budget year to begin building a large-scale oil depot at the new Damerjog Liquid Bulk Port (DLBP).
Finalizing the Gateway
While the port’s ultramodern jetty is already in the final stages of completion, operations cannot launch until the large-scale storage depot is built.
Strategically located in the southeastern region of Djibouti near the Somaliland border, the facility is designed to heavily integrate into regional logistics. The proposed intake terminal sits just 13 kilometers away from the vital Ethio-Djibouti railway network, offering a direct pipeline to the Horn of Africa’s largest landlocked economy.
High-Level Negotiations
Aboubaker Hadi Omar, Chairman of the DPFZA, confirmed that discussions are already underway to secure the necessary funding.
“We are discussing with the Ethiopian government’s investment arm, Ethiopian Investment Holdings (EIH)…” Omar told Capital reporters at his office in Djibouti City.
More storiesThe DPFZA is expecting the Ethiopian government, via EIH, to provide the necessary financing to construct the intake terminal. For landlocked Ethiopia, backing the project could offer guaranteed energy security and streamlined fuel logistics, while Djibouti secures a committed regional partner for its latest mega-infrastructure project.
