Djibouti makes big leap in 2018 World Bank LPI
World Bank LPI has revealed that Djibouti has moved up 44 places
August 06, 2018: The World Bank Logistics Performance Index (LPI) has revealed that Djibouti has moved up 44 places within two years in the global rankings for logistics performance in 2018.
The report comes just a year after the country opened three major ports which are amongst the most modern in Africa and the continent’s first trans-border electrified railway; Doraleh Multipurpose Port can accommodate vessels up to 100,000 DWT and in the first six months of 2018 it handled over 24,000 TEUs.
Djibouti’s recent investment in its infrastructure has led to the country making consistent improvements in the biennial global ranking on logistics. The report is based on six criteria and Djibouti has improved its ranking in five criteria.
Of these criteria, Djibouti has made the most improvement in the infrastructure ranking – an assessment of the quality of trade and transport infrastructure in the country, jumping up 50 places in just two years to reach 60th place.
Djibouti has a leading role in logistics on the continent; it is ranked 9th out of all African countries and 5th among the COMESA countries. Thus, this latest report confirms that Djibouti’s vision of becoming an international trade hub is now a reality.
This is the second World Bank report to highlight Djibouti’s continuous improvement in trade and logistics. The most recent ‘Doing Business’ report classed Djibouti as one of the top ten most improved economies for the ease of doing business.
Doraleh Container Terminal (DCT) operates at 34 TEU movements per hour per crane, one of the highest rates in Africa. The terminal also has impressive productivity rates with container traffic having increased by 32 percent under the new management company in the last five months.
The opening of the railway between Djibouti and Addis Ababa has reduced cargo transit times from three days by road to twelve hours by train.
The strong logistics ranking of the country will also be a welcoming sign for new investors to Djibouti’s recently opened International Free Trade Zone.