The 60-hectare facility is built to handle up to one million 20-foot containers a year. It supports both the African Continental Free Trade Area and the DESSU Corridor. Together, these two frameworks signal a step-change in Ethiopia’s trade infrastructure ambitions.
A bigger logistics node for a bigger trade agenda
Prime Minister Abiy Ahmed inaugurated the first phase on 10 September 2026 in Mojo, Oromia regional state. The modern facility sits inside a broader push to raise Ethiopia’s trade capacity and cut friction in cargo movement.
The expanded site runs on fully digital operations. It also includes Ethiopia’s first rail-mounted gantry crane, which speeds container transfers from the railway line. Faster handling means lower dwell times and better asset use — a direct benefit for investors evaluating corridor assets.
According to Ethiopian Broadcasting Corporation reporting on the inauguration, the hub can process up to one million 20-foot containers each year. It will also enable domestic packaging of dry bulk cargo. The government says this can save foreign currency and create jobs.
What does the DESSU Corridor mean for investors?
The project is a key node on the Djibouti–Ethiopia–South Sudan–Uganda Corridor, known as DESSU. That corridor supports Ethiopia’s push to deepen links with nearby markets. It also improves cargo flows across the Horn of Africa.
The World Bank has framed Modjo as a model for regional integration. In late August, it reported that joint work with the Ethiopian government had modernised the dry port, digitised operations and strengthened inter-agency coordination. Handling capacity doubled. Container dwell times fell sharply.
Infrastructure that reduces trade costs supports exports and eases logistics pressure. Meanwhile, it creates room for public-private partnerships in logistics and industrial services. This trajectory mirrors Ethiopia’s expanding infrastructure finance relationship with the Asian Infrastructure Investment Bank, which has backed similar corridor-enabling projects.
Why the Modjo logistics hub matters now
The inauguration signals renewed momentum in corridor infrastructure. It also shows how logistics assets can serve both domestic industry and cross-border trade under AfCFTA.
The hub covers 60 hectares and is designed for high-throughput container handling. World Bank data links the upgrade to lower processing times and stronger trade flows. Modjo is becoming the physical checkpoint where Ethiopia’s trade reform meets regional commerce.
What should investors watch next?
Investors should track cargo throughput, railway integration and whether the hub cuts logistics costs across the DESSU Corridor. They should also monitor whether the model draws corridor-linked investment in warehousing, freight handling and industrial packaging.
The region’s growing appetite for integrated trade corridors suggests Modjo could serve as a template for similar upgrades across East Africa — and that appetite shows no sign of easing.
Quick answers
The Modjo logistics hub can handle up to one million 20-foot equivalent unit containers per year. It covers 60 hectares and includes Ethiopia’s first rail-mounted gantry crane.
The DESSU Corridor is the Djibouti–Ethiopia–South Sudan–Uganda trade route. It is designed to improve cargo flows and deepen market links across the Horn of Africa.
The World Bank worked with the Ethiopian government to modernise the dry port, digitise its operations and strengthen inter-agency coordination. World Bank data show handling capacity doubled and container dwell times fell sharply as a result.
