Within a partnership framework with theEmirate of Dubai, the government of Djibouti has developed,during the last decade, an outstanding port and logisticshub with few precedents in other African countries. Theobjective of the present study is to strengthen thecompetitiveness of the ports of Djibouti (old port ofDjibouti and new port of Doraleh) and ensure theirmedium-term and long-term development by designing a modernand efficient regulation system for private port operators,and specifically addressing issues related to the quality ofservice and pricing, in addition to institutional relatedissues. The port of Djibouti's competitiveness can bemeasured by its capacity to counter competition from otherports through the quality of its infrastructures andservices, performance and port costs. Real or potentialcompetition facing the port of Djibouti concerns non-captivetraffic and its two components, transit and transshipmenttraffic. The port of Djibouti's natural competitors forEthiopia's transit traffic are the ports of Berbera,Assab, Massawa, Port Soudan and Mombasa due to landlockedEthiopia's extensive terrestrial borders with Somalia,Eritrea, Soudan, and Kenya. But this competition remainspotential and very marginal due to the unfavorablegeopolitical context and/or the inferior quality ofinfrastructures of these ports. Conditions of competitionregarding transit traffic could nevertheless evolve as it isin Ethiopia's natural interest to diversify itssea-access routes so as not to depend on a single port thatmay be tempted to abuse of its dominant position withnon-competitive tariffs. Contrary to existing competition oncontainer transshipment traffic, potential competition ontransit traffic will have a more considerable impact on allDjibouti port operators in terms of tonnage handled andrevenue loss, as it will affect all types of traffic(conventional and containerized, liquid and dry bulk) andbecause transit charges are considerably more lucrative thantransshipment charges. Port activities that need to beregulated to reinforce the port of Djibouti'scompetitiveness are the commercial services for cargos andvessels provided by port operators.