Djibouti Aims to Become "New Singapore or Dubai"

Djibouti hopes to capitalize on its location on one of the world’s busiest shipping lanes and access to the Suez Canal to become the gateway from Asia to Africa

Djibouti says it is aiming to become a key port, akin to Dubai or Singapore, and a commercial hub of eastern Africa, Yahoo News reports.

The small country of about 850 thousand says it wants to capitalize on its location on one of the world's busiest shipping lanes and access to the Suez Canal, as well as its current position as the main port for Ethiopia, to become the gateway from Asia to Africa.

"More and more shipping lines are interested in Djibouti, we are now making the way to be a Dubai, even Singapore!" said Suleiman Ahmed, a senior executive at Doraleh Container Terminal.

Growing interest in Djibouti, a six to 10 percent increase in cargo traffic per year, and a growing number of countries, such as the U.S., France, and Japan using the country as a place for military and naval bases, comes as other ports in the region reportedly face increasing struggle.

"Yemen's once key port of Aden - just across the Gulf of Aden from Djibouti - is now a war zone," reported Yahoo News.

"In a volatile region, Djibouti hopes to build a reputation of stability and security."

However, Yemen is not the only struggling port in the region, "Mombasa is congested, Eritrea is not a welcoming country, but Djibouti is a strategic and safe location – we rely on it," said Ahmed.

To pursue its vision of Djibouti becoming a key port, the country has committed to a series of infrastructure projects estimated at $14 billion, hoping that African economic growth will help the country recoup the investment.

Currently, Chinese workers are busy building a new terminal dedicated to container ships from Asia, including the construction of six new docking terminals, each specialised for different commodities including minerals, livestock, oil and gas.

On Monday, it was reported that the widening of the Suez Canal, which is to be completed this summer, expected to generate cost savings of $60,00-$70,000 per ship.