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  September 16th, 2016 | Written by

DP World Wins Concession For Port Of Berbera In Somaliland

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  • DP World to provide $442 million investment in Somaliland over three phases.
  • DP World to develop a multi-purpose port at Berbera, Somaliland.
  • DP World's investment in Berbera will include quay, yard extension, and cargo handling equipment.

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

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.

The Republic of Somaliland, is a self-declared state internationally recognized as an autonomous region of Somalia.

DP World will set up a joint venture with 65-percent 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 1,300-foot quay, a 2.7 million square-foot yard extension, and gantry cranes and reach stackers to handle containers and cargo. Construction of the quay extension is expected to start in about 12 months 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. The

project will focus on containers with the capability to handle other types of cargo and will be implemented with the government of Somaliland.

“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,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World. “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.”

“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,” said Saad Ali Shire, Minister of Foreign Affairs and International Cooperation, Republic of Somaliland.

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. DP World’s investments will provide the port of Berbera its first shore cranes. The project includes long-term expansion potential with a concession area of 1.6 square miles and over four square miles of additional available land for a potential free zone.