Apr 10, 2017: Putland and P&O Ports has signed concession agreement for the development and management of a multi-purpose port project at Bosasso in the Puntland State of Somalia. The said agreement is for 30-years.

It will see a total of $336million investment. This will be in two phases: $136m for the first phase and $200m for phase two. The port will be located in Puntland an autonomous state within Somalia, which has been wracked civil conflict since the early 1990's.

H.E. Abdiweli Mohamed Ali, President of Puntland, and Sultan Ahmed bin Sulayem, chairman of Ports, Customs & Free zone Corporation (PCFC), signed the agreement at a ceremony in Dubai in the presence of senior Government officials and representatives of PCFC.

Work on the project will involve building a 450 million quay and a five-hectare backup area, dredging to a depth of 12metersr with reclamation work using dredge spoil.

This will also see significant investment in an IT and terminal operating system, mobile harbour cranes and container handling equipment.

H.E. Abdiweli Mohamed Ali, President of Puntland, said, “Infrastructure development is a priority for the government of Puntland as it underpins the efforts of taking this country forward. This concession agreement of expanding the Bosasso port is a major achievement for my government and the people of Puntland.”

Sultan Ahmed Bin Sulayem, PCFC chairman, said, “The Port of Bosaso is a unique opportunity to enter into a multi-purpose port that is transitioning to containerisation in a country that is growing strongly as it enters a period of sustained peace. It fits ideally into P&O Port’s mandate to invest in multipurpose ports in emerging markets, employing local people and developing skills. In return, the state of Puntland will benefit from an internationally recognised port operator contributing to its economic growth and trade potential.”

The Port of Bosaso is located in Puntland State of Somalia, 2,000 kilometer north of Mogadishu.

The deal comes as Somalia is struggling to get to grips with a number of new piracy attacks causing concerns in the shipping industry of a resurgence in the scourge which reached critical levels between 2008 and 2012. Three hijackings have taken place in the last month.

Photo: Officials at the signing ceremony in Dubai

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