Somaliland’ Minister of Foreign Affairs and International Cooperation Dr Saad Ali Shire (right) and DP World’s chairman and chief executive Sultan Ahmad Bin Sulayem signing the deal

The $442 million deal will let Dubai-based port operator DP World to develop and manage Barbara port for 30 years with an automatic 10-year extension

By Abdirisak Itaqile

Dubai, (Somaliland Monitor) -Somaliland and United Arab Emirates governments on Monday officially signed an investment deal to expand and modernize Berbera port infrastructure. The $442 million deal will let Dubai-based port operator DP World to develop and manage Barbara port for 30 years with an automatic 10-year extension, according to  press statements released by both Somaliland government and DP World.

The signing ceremony held in Dubai city in United Arab Emirates was attended by Somaliland Vice-President Abdirahman Abdilahi Ismail :Saylici” Foreign Minister Dr. Saad Ali Shire, UCID party leader Faisal Ali Warabe and DP World’s chairman and chief executive Sultan Ahmed Bin Sulayem.

According to the deal DP World will set up a joint venture with the Somaliland government and control 65 percent of the project in the port of Berbera. Planned investment of up to $442 million will be phased and dependent on port volumes and will include a quay and yard expansion as well as cargo cranes.

The deal was signed by Somaliland Foreign Minister Dr. Saad Ali Shire and DP World’s chairman and chief executive Sultan Ahmad Bin Sulayem on behalf of Somaliland and UAE.

“Today is a historical day for the people of Somaliland and United Arab Emirates. 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” DP World CEO Sultan Ahmad Bin Sulayem said following the signing of the deal.

“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 productivity-enhancing, security, safety and environmental best practices in container terminal development and operation to Somaliland.” Sultan Ahmad Bin Sulayem added.

Somaliland’ Minister of Foreign Affairs and International Cooperation Dr Saad Ali Shire who also spoke to the media 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.”

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.”

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.

DP World is one of the world’s largest marine terminals operators and it has portfolio of more than 70 marine terminals across six continents.

Port of Berbera will complement DP World’s network in East Africa by creating a new deep-water 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.

 

 

 

 

Is the Founder and Editor-in-chief of Somaliland Monitor. Prior founding Somaliland Monitor he served as the editor-in-chief of The Independent English newspaper, a sister publication of Hubaal daily Somali newspaper.

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