DP World Wins Somaliland Concession
Dubai's DP World has won a 30 year concession to manage and develop a port in the breakaway Somalia region of Somaliland that will require an investment of $442 million, the ports operator said in a stocks exchange statement on Monday.
DP World will have a 65 percent share in the joint venture project at the Port of Berbera with the government of Somaliland.
The first phase of the project will include a 400 meter quay, a 250,000 square meter yard extension and gantry cranes and reach stackers to handle containers and cargo. Construction of the quay extension is expected to start 12 months and will take 24 months to complete.
The total investment of up to $442 million will be phased over time and be dependent on port volumes. The project will focus on containers with the capability to handle other types of cargo and will be implemented with the government of Somaliland. The Port of Berbera currently has no shore cranes.
The plan aims to offer long-term expansion potential with a concession area of 4.25 square kilometers and over 11 square kilometers of additional available land for a potential free zone.
The concession, with an automatic 10-year extension, will complement DP World’s existing port at Djibouti in the Horn of Africa.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “Investment in this natural deep-water port will attract more shipping lines to East Africa and its modernization will act as a catalyst for the growth of the country and the region’s economy.
“Berbera will contribute to our continued growth in the developing markets of Africa in the years ahead. It is also a breakthrough in developing access to the sea for landlocked Ethiopia, the region’s largest economy.”