Linked by rail to Addis Ababa, Ethiopia, Djiboutis port is the primary source of the countrys economic livelihood. As a direct result of neighboring Ethiopias war with Eritrea (Ethiopia has no direct sea link), cargo volumes at the port have increased dramatically. 

In 1998, Ethiopia severed relations with Eritrea and ceased the use of its port, Assab, and that year traffic at Djiboutis port increased 83 percent, and have been climbing steadily ever since. The development of the port into a fully modernized cargo facility and one of the most important ports on the Red Sea has been overseen by the Dubai Ports Authority (DPA), that took over management of the port in 2000 on a 20-year contract. The DPA and the government of Djibouti are carrying out plans to turn Djibouti into a regional logistics hub for operations en route to and from Africa, the Red Sea, and the Arabian Peninsula. DPI is constructing a new port at Doraleh, 7 miles from the existing port, to include a deepwater container terminal, an international logistics and industrial center, and oil terminal facilities.
Singapores Pacific International Lines is one of the most important customers. Djiboutis port also handles World Food Program cargo and other aid packages headed into Africa.

Djibouti is excellently situated and capitalize on this rapidly expanding sector and provide safe harbor for some of the estimated eight hundred cruise ships that pass in close proximity to djiboutis coastline each year.
The harbor site is located on the west side of a peninsula which projects north
rom Djibouti city into the Gulf .

Djiboutis rail road and airport infrastructure will support its aspiration of becoming one of the East Africas most visited destinations and enhancing the overall accessibility and reach of this nation.
China merchants together with the port of Djibouti authorities are leading the
way in transforming the port and key sites within the city into a visionary example of city hub that will be equipped for the demands of the 21st century and provide world-class facilities.