DP World to make an investment of half a billion in Somaliland port
Shipping - The investment – which is about the same as the annual GDP of Somaliland – follows the official opening of its Doraleh Multipurpose port in Djibouti last week.
Jun 03, 2017: DP World plans to spend $442m on the expansion of its port at Berbera in Somaliland.
The investment – which is about the same as the annual GDP of Somaliland – follows the official opening of its Doraleh Multipurpose port in Djibouti last week.
The Dubai-based port operator said that the money will be spent on the construction of a 400m quay, a 250,000-sq-m extension to the port’s storage area, as well as equipment such as modern gantry cranes and reach stackers.
“This is part of our vision to act as an enabler of trade and to facilitate growth by helping African countries develop their infrastructure that connects them to global markets,” said Sultan Ahmed bin Sulayem, the chief executive of DP World.
Somaliland’s economy, 60 percent of which is made up of livestock exports, should receive a boost from increased transit fees and the new free-trade zone.
However, the main function of the port is to provide another connection between Ethiopia and global markets, and a transshipment hub where large container ships can offload their freight to feeder ships able to negotiate the Horn of Africa’s shallow ports.
President of Somaliland Ahmed Mohamed Mohamoud Silanyo, said, “This DP World investment in the Port of Berbera will strengthen the relationship between the Republic of Somaliland and the UAE which existed for many centuries in the past. Additionally, it will bring back and highlight the commercial position and importance of the Port of Berbera as a Red Sea gateway for the Middle East and Africa."