DP World in US$ 440 million agreement for Somaliland port
By Mike Hayes12 September 2016
Global ports operator DP World has signed an agreement to develop a new commercial port at Berbera, in the Federal Republic of Somaliland.
The Dubai-based firm will invest up to US$ 442 million for a 65% stake in the first phase of the project, which will include a 400 m quay and a 250,000 m2 container yard, as well as gantry cranes and reach stackers. The government of the breakaway republic will fund the remainder of the project.
The agreement stipulates that DP World will run the port for a minimum 30-year period.
The republic’s government says it intends the port to become a regional transhipment hub, to improve the economy of the country which, according to the World Bank, has the fourth-lowest GDP per capita in the world.
DP World chairman, Sultan Ahmed Bin Sulayem, said, 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.”
Construction work on the port is expected to start within 12 months.