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, opening a new point of access to the Red Sea to 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 $442m will include a first phase of a 400 m quay and 250,000 sq m 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 $442m 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.
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.”
Source: DP World
