Ethiopia and Djibouti have signed an agreement to establish a joint company to manage the Ethiopia-Djibouti Railway.
The accord, which was signed here Monday by Ethiopian Transport Minister Ahmed Shide and his Djiboutian counterpart, Mohammed Abdulkadir Musa, will enable the trans-border railway transport service to be effective and price-competitive.
The Ethiopian Transport Ministry said in a media statement that the company would establish its headquarters in Addis Ababa and its major activities would be providing passenger and cargo transportation services as well as maintaining the railway.
The infrastructures will remain under the ownership of the two countries, the statement added.
The two countries have agreed to make the services efficient and competitive in price.
Both sides have also agreed that the Ethiopia-Djibouti Joint Commission which will determine the tariffs for transportation of passengers and goods will be led by the transport ministries of the two countries.
The commission will also work to promptly remove challenges which hamper the efficiency of the railway and to transport the exports of land-locked Ethiopia at a low price to the port of Djibouti City near the entrance to the Red Sea.