HAFZA RAIL

With settlement prospects improving with the Somalia government’s meeting at Baidoa city 26th February 2006, HAFZA is commencing planning to build a rail network throughout Puntland, State of Somalia as part of its contract with the State of Puntland known as HAFZA RAIL.

The first link to be studied is the link between Gara’ad and Werdẽr, Ethiopia.  The rational for planning this link first, is to open the landlocked country of Ethiopia to expedite access to that country’s 70 million population and further assist Puntland/Somalia.  

Ethiopia has been dependent on the Djibouti port since the border war with Eritrea for its import and export activities. However, in recent years Ethiopia has been trying to look for an alternative port. The Somaliland’s port, Berbera, is considered as alternative port by Ethiopian authorities. 

HAFZA’s contract to develop the free zones is with the State of Puntland and limited to the Puntland State.  It is therefore considered a matter of economics for HAFZA to assist Ethiopia simultaneously with international trading prospects in the first instance through the planned free zone port of Gara’ad, to assist the whole of Somalia. 

In that regard, it is to be noted that Puntland has a relative small population of around two (2) million while the whole of Somalia has a total population of around ten (10) million.  Both populations need access to international markets.

The left hand side sub-directories set out the initial draft thinking in commencing these works through 2006 under (HAFZA RAIL) for the Gara’ad/Werdẽr link which includes executive summary, financing and map details.