Shipbroker Notes: Djibouti and Salt Production at Lake Assal

Djibouti's economy is largely concentrated in the service sector. Commercial activities revolve around the country's free trade policies and strategic location as a Red Sea transit point. Due to limited rainfall, vegetables and fruits serve as the principal production crops, and other food items require importation. The GDP (purchasing power parity) in 2013 was estimated at $2.505 billion, with a real growth rate of 5% annually. Per capita income is around $2,874 (PPP). The services sector constituted around 79.7% of the GDP, followed by industry at 17.3%, and agriculture at 3%.
As of 2013, the container terminal at the Port of Djibouti handles the bulk of the nation's trade. About 70% of the seaport's activity consists of imports to and exports from neighboring Ethiopia, which depends on the harbour as its main maritime outlet. The port also serves as an international refueling center and transshipment hub. In 2012, the Djiboutian government in collaboration with DP World started construction on the Doraleh Container Terminal, a third major seaport intended to further develop the national transit capacity. A $396 million project, it has the capacity to accommodate 1.5 million twenty foot container units annually.

The Djibouti firm Salt Investment (SIS) began a large-scale operation to industrialize the plentiful salt in Djibouti's Lake Assal region. Operating at an annual capacity of 4 million tons, the desalination project has lifted export revenues, created more job opportunities, and provided more fresh water for the area's residents.In 2012, the Djibouti government also enlisted the services of the China Harbor Engineering Company Ltd for the construction of an ore terminal in the area. Worth $64 million, the project is scheduled to be completed within two years and will enable Djibouti mineral officials to export a further 5 thousand tons of salt per year to markets in Southeast Asia.