• Djibouti grants RSGT 30-year deal to develop Port of Tadjourah
• Project aims for 5M-ton capacity, links to Ethiopia’s trade corridors
• Plan includes free zone to boost investment and regional logistics role
  

The Djibouti Ports and Free Zones Authority (DPFZA) finalized a 30-year concession agreement last week with Saudi Arabia’s Red Sea Gateway Terminal (RSGT) for the development and operation of the Port of Tadjourah. The agreement follows a memorandum of understanding signed in March between the two parties.

As part of his work mission to Jeddah, Mr. Aboubaker Omar Hadi, Chairman of Djibouti Ports and Free Zones Authority (DPFZA), attended as a witness the signing ceremony of the Framework Agreement for a 30-year concession of the Port of Tadjourah between the Port of Tadjourah and… pic.twitter.com/DkXIgXmkc5

— Djibouti Ports & Free Zones Authority (@dpfza) October 24, 2025

RSGT plans to transform the port into a major regional multipurpose terminal with a projected handling capacity of 5 million tonnes per year. The goal is to strengthen the port’s role as a strategic gateway for imports and exports to landlocked Ethiopia, Djibouti’s main trading partner. The project also includes the creation of an integrated free zone to attract foreign investment and provide value-added logistics and warehousing services.

The renewed development of the Port of Tadjourah, located in one of Djibouti’s key cities, marks a new stage in the country’s effort to consolidate its position as a regional logistics hub. Situated on one of the world’s busiest shipping lanes, Djibouti aims to capitalize on its location between the Red Sea and the Gulf of Aden by diversifying port infrastructure beyond the Doraleh terminal.

The concession comes as several projects to expand multimodal connections to Tadjourah are underway. The Ethiopian Railway Corporation recently announced a $1.58 billion standard gauge railway project to link northern Ethiopia to the Red Sea ports of Tadjourah, Assab, and Massawa. These corridors provide the shortest maritime access for Ethiopia’s Afar and Tigray regions, where the potash mining sector is rapidly expanding.

Operational since 2017, the Port of Tadjourah was initially built to provide northern Djibouti with infrastructure to handle potash exports from Ethiopia’s Danakil Depression. The terminal also manages other Ethiopian exports, including livestock and sesame.

Henoc Dossa