The objective of this policy note is:(i) assessing the current situation of the transport andlogistics sector in Djibouti, in particular regardingemployment; (ii) examining the potential of the sector forcreating jobs and generating new activities; and (iii)analyzing the constraints and making recommendations toalleviate. The note is divided into three chapters: (1) adiagnosis of transport and logistics; (2) opportunities andstrategic priorities for the future; and (3) a suggestedaction plan. This policy note deals with transport andlogistics and provides key input to the Djibouti New GrowthModel study. The note relies on the findings of the WorldBank mission that visited Djibouti in January 2012 tocollect data and interview various representatives of thepublic and private sectors, as well as on a literaturereview. The note concludes that transport and logistics havea relatively limited potential for reducing unemploymentsince port activities are capital-intensive; the truckingindustry serving the corridor to Ethiopia is totallydominated by Ethiopians; and the ongoing improvement of thesupply chain s efficiency tends to cut jobs for a givenvolume of trade.