To alleviate the lack of transportation in the city, the Ethiopian government constructed Addis Ababa light rail transport by signed and Agreement with the Chinese China Railway Group Limited company (CREC), which was built and started to operate under the development and transformation plan, Built at cost of 475 million US dollars. With 85% of which was financed by import-export of China (EXIM) Bank and 15% covered by the Ethiopian government.
In November, 2015 the railway line officially began its service for 18 hours in three-shift. Its 34 km long which traveling in two directions East-West starting from Ayat Square-Junction-and destination is Tor hayloch Hospital and it has 17.4 km length.
North-South departure from the Minilik second Square to Kality and it has 16.59 km length. The two lines use 2.7km of common track from St. lideta church to Meskel Square.

The line has Chinese standard gauge1.435 mm width and double track. The design speed is 80 km/h and the operational speed is 70 km/h. It travels underground, through tunnels and bridges, and has pedestrian and car crossings. It has 39 stations which locate 27 on the ground, 9 on the bridge, 2 on the partial bridge and one in the tunnel. The light rail has 39 ticket offices and18 power stations. It has 22 elevators and 12 escalators.

CREC Shenzhen Metro Group, a Chinese company, has been contracted to operate and maintain for 3 years. There are 41 trains can carry 317 passengers