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Friday, 16 March 2018

Ethiopia Acquires 19% Stake in DP World Berbera Port

DP World, the United Arab Emirates-based maritime conglomerate, has announced that Ethiopia will become a shareholder of the Port of Berbera in Somaliland, a crucial site for Middle Eastern trade, strategically located along the oil route.

This announcement follows an agreement that was signed by DP World and the Somaliland Port Authority in Dubai on March 1, 2018.

DP World will hold a 51% stake in the project, Somaliland 30% and Ethiopia the remaining 19%.

The government of Ethiopia will also invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country of Somaliland, which is one of the fastest growing nations in the world.

DP World also announced that there are plans to construct an additional berth at the Port of Berbera.

This plan is in line with the Berbera master plan for development, which DP World has already started implementing.

DP World will also be adding new equipment such as cranes to further improve efficiencies and productivity.

The first cranes are scheduled to arrive later this year.

In a statement released in tandem with the announcement, Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, expressed the importance of working with the governments of Somaliland and Ethiopia on the projects, which will fuel trade and employment opportunities in the region.

He said: "The ports of Berbera and Doraleh will provide significant capacity to the region.

"Both these ports and more capacity will be needed to serve the region's growth potential in the future."

Dr. Saad Al Shire, Minister of Foreign Affairs and International Cooperation, Republic of Somaliland, commented: "The extension of the port will increase capacity of the region to accommodate the increase in trade."

Ahmed Shide, Ethiopian Transport Minister, stated: "After a year of serious negotiations, Ethiopia has concluded an agreement with the Somaliland Ports Authority and DP World.

"The agreement will help Ethiopia secure an additional logistical gateway for its ever-increasing import and export trade driven by its growing population and economy.

"In addition, Ethiopian participation in the development of Port of Berbera and the Berbera Corridor will help bring increased economic development and opportunity to the people of Somaliland.

"Ethiopia will continue to further invest in and develop the Djibouti corridor and further consolidate the use of existing ports in Djibouti.

"It will also look for other opportunities to develop additional ports and logistics corridors in the region."

March 1, 2018 by PortTechnology


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