05:33 a.m. Jul 01, 1998 Eastern
ADDIS ABABA, July 1 (Reuters) - Ethiopia said on Wednesday it would donate more than 21 million birr ($3.04 million) to improve the port of Djibouti, vital to Ethiopia since the outbreak of conflict with Eritrea.
The funds from the Ethiopian Maritime and Transport Service would be used to buy cranes for lifting heavy cargo and for building warehouses, Ethiopian government spokeswoman, Selome Taddesse, said in a statement.
``The warehouses are needed to improve port services and help alleviate the problem of overcrowding at the port,'' the statement said.
Landlocked Ethiopia announced it would cease using the Eritrean ports of Assab and Massawa for imports and exports soon after a conflict with that country began on May 6.
Djibouti has benefited hugely from the decision and its Red Sea port is now bustling.
Ethiopia says it wants to explore the possibility of using other ports in Somaliland, Somalia and Kenya for trade.