DP World wins 30-year concession for port of Berbera in Somaliland - CILT(UK)
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DP World wins 30-year concession for port of Berbera in Somaliland

07 September 2016/Categories: Freight Forwarding, Ports, Maritime & Waterways, Corporate News

DP World has won a 30-year concession with an automatic 10-year extension for the management and development of a multi-purpose port project at Berbera, Republic of Somaliland.

The Port of Berbera opens a new point of access to the Red Sea and will complement DP World’s existing port at Djibouti in the Horn of Africa.

DP World will set up a joint venture with 65% control together with the government of Somaliland to manage and invest in the Port of Berbera. 

The investment of up to $442 million will include a first phase of a 400 metre quay and 250,000 square metre yard extension, and gantry cranes and reach stackers to handle containers and cargo. Construction of the quay extension is expected to start 12 months after the satisfaction of the terms and conditions of
the agreement and will take 24 months to complete.

Total investment of up to $442 million will be phased over time and be dependent on port volumes, and will create a regional trading hub along with the scope for a free zone. The project will focus on containers with the capability to handle other types of cargo and will be implemented with the government of Somaliland.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said:
“We are delighted to extend our African footprint with a major investment in Somaliland. Investment in this natural deep-water port will attract more shipping lines to East Africa and its modernisation 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. We look forward to bringing DP World’s world class productivityenhancing, security, safety and environmental best practices in container terminal development and operation to Somaliland.” 

Dr Saad Ali Shire, Minister of Foreign Affairs and International Cooperation, Republic of Somaliland, said:

“We are excited to partner with DP World on this landmark project. DP World Port of Berbera will offer East African importers and exporters a unique, additional world class deep-water port that will dramatically improve the competitiveness of their products in world markets and has the potential to transform the region’s economy.”

Port of Berbera will complement DP World’s network in East Africa by creating a new deepwater gateway for Somaliland’s and East Africa’s global trade with a range of benefits that include:

  • World class deep sea port infrastructure and services at the Port of Berbera, Somaliland
    which currently has no shore cranes.
  • Long-term expansion potential with a concession area of 4.25 square kilometres and
    over 11 square kilometres of additional available land for a potential free zone.

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