East Africa’s Largest Ship Repair Facility Positioned Along World’s Busiest Oil Route Inaugurated In Djibouti

Djibouti has officially inaugurated a $116 million ship repair yard along one of the world’s busiest shipping routes.

The facility, known as the Djibouti Ship Repair Yard (DSRY), was opened on Thursday by President Ismaïl Omar Guelleh.

The project was developed in partnership with Damen Shipyards Group and financed by Invest International with an investment of €107.5 million ($116.5 million).

Located at the entrance to the Bab el-Mandeb, the yard is positioned to serve vessels transiting a critical global shipping corridor linking Europe, Asia and the Middle East.

Authorities said the facility is the largest ship repair yard in the Red Sea and across East Africa. It includes a floating dock measuring 217 metres in length and 43 metres in width, with a lifting capacity of 20,100 tonnes.

The yard is designed to handle a wide range of vessels requiring both preventive maintenance and complex repair work.

Officials said that the project has been a national priority due to Djibouti’s strategic location. The president stated that the country has a responsibility to support ships passing through the region, particularly those requiring dry docking and mechanical repairs.

The yard is expected to generate around 350 direct jobs and 1,400 indirect jobs, while also contributing to the development of technical skills among local workers.

Authorities said the project will combine international expertise with local talent to build long-term operational capability.

Infrastructure Minister Hassan Houmed described the facility as a strategic national asset that will strengthen port competitiveness and support the country’s blue economy.

Meanwhile, Djibouti Ports and Free Zones Authority Chairman Aboubaker Omar Hadi stated that the yard aligns with the country’s long-term development vision to 2035 and will enhance its role in regional maritime services.

Arnout Damen reaffirmed the company’s commitment to supporting the yard’s operational performance and long-term success.

Djibouti has invested heavily in port and logistics infrastructure in recent years to capture greater value from shipping traffic moving through the Red Sea corridor.

Its ports serve as a vital trade gateway for neighbouring countries, particularly Ethiopia, which relies on Djibouti for the majority of its imports and exports.

Reference: Djibouti Ports & Free Zones Authority