This operation has been modified as per budget revision 4 (see below)
Djibouti Port is the principal transit point for cargo in and out of Ethiopia and a key link in commercial transport routes to and from the greater Horn of Africa. The port is likewise critical for the efficient flow of humanitarian goods. Nearly four million metric tonnes of relief cargo have passed through Djibouti in just the past three years.
Commercial throughput for the rapidly expanding Ethiopian market, combined withcontinued high volumes of food assistance, have generated significant strain on the
Djibouti port and transport sectors, resulting in escalating logistics costs and increasing congestion and bottlenecks.
To enhance efficiencies in both humanitarian and commercial logistics within a broader sector plan, the Government of Djibouti (GoD) and WFP are developing a humanitarian logistics base (HLB) in the port. The GoD has granted WFP free concession to 40,000 square meters of land to construct a facility offering containerized, bulk, break bulk and non-food items (NFI) storage services to WFP operations and to the wider humanitarian community.
The HLB will achieve four strategic objectives: i) enhanced efficiencies of supply chains in the Horn of Africa; ii) augmented regional humanitarian response capabilities; iii) alignment of port operations with Ethiopia’s expanding strategic reserves; and, iv) strengthened logistics systems and capacities in Djibouti Port.
Budget Revision 3 to SO 200358 increases the budget of USD 2.9 million, taking the total budget to USD 29.4 million, and extends the project in time until 30 June 2016.