Djibouti opens US$124M ship repair facility, largest in Red Sea, East Africa
The project is expected to contribute to employment and skills development.
DJIBOUTI – Djibouti has opened its largest ship repair yard with €107.5 million (US$124 million) Damen partnership, marking a major milestone for the country’s maritime sector.
For fresh produce exporters and food logistics investors, this facility promises improved vessel reliability and reduced downtime for ships moving perishable goods through the Bab el-Mandeb corridor.
Technical Capacity and Strategic Location
The yard includes a floating dock measuring 217 metres in length and 43 metres in width, with a lifting capacity of 20,100 tonnes. It is designed to serve different vessel types, offering preventive and corrective maintenance through a mix of international and local expertise.
Strategically positioned at the entrance to the Bab el-Mandeb strait, one of the world’s busiest maritime passages, the facility addresses a critical gap in regional repair capacity.
For food supply chains, reliable vessel maintenance means fewer unexpected delays for reefer ships carrying avocados, citrus, frozen meat, and other perishable goods. Reduced downtime results in fresher products upon arrival and a lower risk of spoilage.
Employment and Economic Impact
The project is expected to contribute to employment and skills development. It is projected to create approximately 350 direct jobs and 1,400 indirect jobs while supporting training in technical fields for young professionals.
Direct Statements from Leadership
In his address, President Ismaïl Omar Guelleh said: “The DSRY project has always been a national priority, given Djibouti’s strategic location at the entrance to the Bab el-Mandeb, one of the busiest maritime passages in the world. This geographic position gives us the responsibility to meet the needs of vessels transiting the region, whether for dry docking or mechanical repairs.“
In addition, Hassan Houmed, Minister of Infrastructure, said: “The Djibouti Ship Repair Yard constitutes a strategic national asset, serving port competitiveness, the blue economy, and Djibouti’s regional influence.”
Aboubaker Omar Hadi, Chairman of Djibouti Ports and Free Zones Authority, said the project strengthens Djibouti’s position as a key maritime hub under the 2035 vision.
Outlook for Regional Trade
Arnout Damen, President of Damen Shipyards, said the company remains committed to supporting the facility’s long-term success and operations.
For Middle Eastern and African food investors, the ship repair yard reduces the need for regional vessels to travel to Europe or Asia for maintenance, lowering operational costs and improving predictability in perishable cargo supply chains.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
