Dubai-based DP World is investing $442 million in the upgrade of Somaliland’s Berbera port to handle more cargo, especially for Ethiopia.
The upgrade involves building a 400m quay with a 250,000 square-metre yard, and supplying gantry cranes and reach stackers.
DP World will hold a 65 per cent stake in the venture. DP World operates 75 port terminals around the globe.
Somaliland’s ruling Kulmiye party chairman Muse Biihi said their aim is to transform the Berbera port into a regional transshipment hub for East African countries and develop a free trade zone.
Speaking in Nairobi, Mr Biihi said DP World had signed a 30-year concession with a 10-year extension for management and development of the project.
More competitive against Djibouti
The upgrade of the port is expected to make Berbera more competitive against the Djibouti port for business around the Horn of Africa.
Somaliland’s major trading partners are Kenya, Ethiopia, United Arab Emirates, Saudi Arabia, Italy, Thailand, Brazil, the Netherlands the United Kingdom, Japan South Korea, Turkey, Malaysia and France.
The livestock sector account about Somaliland exports livestock to the Gulf states, especially Saudi Arabia, UAE, Oman and Yemen.
Mr Biihi, who has announced his intention to contest the presidency of Kulmiye Party in October, said that although Somaliland is energy-poor, its government is looking to harness renewable sources to reduce dependence on diesel generators for power.
Solar and wind resources, if tapped, can supply ample quantities of clean energy to the semiautonomous region to mitigate the harmful effects of biomass and fossil fuel use to the environment, the leader added.
