A whopping US$ 442m is set to be spent by Dubai-based DP World in the upgrade of Somaliland’s Berbera port so that it can handle more cargo, especially for Ethiopia.
The upgrading process will involve building a 400m quay with a 250,000 square-metre yard, and supplying gantry cranes and reach stackers.
Somaliland’s ruling Kulmiye party chairman Muse Biihi confirmed the reports and said that their objective is to transform the Berbera port into a regional transshipment hub for East African countries and develop a free trade zone.
“We intend to transform the Berbera port into a regional transshipment hub for East African countries and develop a free trade zone,” Muse Biihi said.
He further added that DP World had signed a 30-year concession with a 10-year extension for management and development of the project. The company has a 65 per cent stake in the venture.
This initiative is meant to make Berbera port more competitive against the Djibouti port for business around the Horn of Africa. Somaliland’s major trading partners are Kenya, Ethiopia, United Arab Emirates, Saudi Arabia, Italy, Thailand, and Brazil, the Netherlands the United Kingdom, Japan, South Korea, Turkey, Malaysia and France.
DP World is a leading enabler of global trade and an integral part of the supply chain. It operates several businesses from marine and inland terminals, maritime services, logistics and ancillary services to technology-driven trade solutions.
The company has a portfolio of 78 operating marine and inland terminals supported by over 50 related businesses in 40 countries across six continents with a significant presence in both high-growth and mature markets.