June 26, 2016
Berbera, Somaliland
Dubai Leases Berbera Port for 30 years; Opening 2nd Door for Landlocked Ethiopia
By Tesfa Mogessie | Addis Fortune,
Dubai’d DP World landmark deal with authorities in Somaliland to jointly develop the Port of Berbera is a welcome development for Ethiopia, according to a senior Ethiopian government official.
The Dubai-based company has signed an agreement with the Government of Somaliland, a self-declared breakaway republic of Somalia, to co-invest 442 million dollars in the Port, to manage it under concession for 30 years. The deal was made early last week in Hargessa, the capital of Somaliland, between its Foreign Minister, Saad Sli Shire (PhD), and Sultan Ahmed Bin Sulayem, chief executive of DP World, one of the world’s largest port operators.
DP World signs a $442m joint venture with Somaliland to ‘invest and manage’ Port of Berbera with the aim to transform it into a regional and logistic hub. Landlocked Ethiopia welcomes the unexpected opportunity that opened a second door besides Djibouti ports. (Photo)
Located 937Km east of Addis Abeba, the Port of Berbera is seen by Addis Abeba as the second nearest port to serve its growing volume of cargo which has now congested Djibouti, following massive imports of food aid and fertilizer shipments. Nearly 98pc of Ethiopia’s import and export cargo is shuttled via the ports in Djibouti. Less than two per cent of this cargo, largely of food aid, come through Berbera, with only five berths, compared to Doraleh’s 15 and Djibouti’s 18.
The Port of Berbera was first established by the Soviet Union in 1968 and expanded by the Americans in 1984. It now operates 10 mobile cranes for cargo handling, with a capacity of 70tn and two forklifts of 32tn. Its warehouse area covers 5,760sqm with a storage capacity of up to 120,000tn and open storage area covering 64,000sqm with an additional container storage yard. Two years ago, the port had the capacity to accommodate 35,000tn of cargo, a far cry from Djibouti’s mammoth capability.
“Port Berbera operates low cargo shuttling cost to these areas than from Port of Djibouti,” said Mekonne Abera, general director of Ethiopia’s Maritime Affairs Authority. “The engagement of DP World in Berbera will help us have access to modern services.”
Founded in 1972, DP World has a portfolio of 77 operating marine and inland terminals across six continents. In 2015, it handled 61.7 million 20ft containers and currently its gross capacity of handling stand at 79.6 million TEU, the unit of the capacity of a container ship. The capacity is expected to rise to more than 100 million units by 2020.
This new Berbera Port up-grading project will rival other ports the likes of Mombasa, Djibouti, Port of Sudan and the yet to materialised LAPSSET Lamu Corridor port in handling Ethiopia's imports and exports. Ethiopia wanted 30 percent of its trade to go via Berbera by July last year, according to a five-year growth plan published in 2010.
Source: Dubai Leases Berbera Port for 30 years; Opening 2nd Door for Landlocked Ethiopia
Berbera, Somaliland
Dubai Leases Berbera Port for 30 years; Opening 2nd Door for Landlocked Ethiopia
By Tesfa Mogessie | Addis Fortune,
Dubai’d DP World landmark deal with authorities in Somaliland to jointly develop the Port of Berbera is a welcome development for Ethiopia, according to a senior Ethiopian government official.
The Dubai-based company has signed an agreement with the Government of Somaliland, a self-declared breakaway republic of Somalia, to co-invest 442 million dollars in the Port, to manage it under concession for 30 years. The deal was made early last week in Hargessa, the capital of Somaliland, between its Foreign Minister, Saad Sli Shire (PhD), and Sultan Ahmed Bin Sulayem, chief executive of DP World, one of the world’s largest port operators.
DP World signs a $442m joint venture with Somaliland to ‘invest and manage’ Port of Berbera with the aim to transform it into a regional and logistic hub. Landlocked Ethiopia welcomes the unexpected opportunity that opened a second door besides Djibouti ports. (Photo)
Located 937Km east of Addis Abeba, the Port of Berbera is seen by Addis Abeba as the second nearest port to serve its growing volume of cargo which has now congested Djibouti, following massive imports of food aid and fertilizer shipments. Nearly 98pc of Ethiopia’s import and export cargo is shuttled via the ports in Djibouti. Less than two per cent of this cargo, largely of food aid, come through Berbera, with only five berths, compared to Doraleh’s 15 and Djibouti’s 18.
The Port of Berbera was first established by the Soviet Union in 1968 and expanded by the Americans in 1984. It now operates 10 mobile cranes for cargo handling, with a capacity of 70tn and two forklifts of 32tn. Its warehouse area covers 5,760sqm with a storage capacity of up to 120,000tn and open storage area covering 64,000sqm with an additional container storage yard. Two years ago, the port had the capacity to accommodate 35,000tn of cargo, a far cry from Djibouti’s mammoth capability.
“Port Berbera operates low cargo shuttling cost to these areas than from Port of Djibouti,” said Mekonne Abera, general director of Ethiopia’s Maritime Affairs Authority. “The engagement of DP World in Berbera will help us have access to modern services.”
Founded in 1972, DP World has a portfolio of 77 operating marine and inland terminals across six continents. In 2015, it handled 61.7 million 20ft containers and currently its gross capacity of handling stand at 79.6 million TEU, the unit of the capacity of a container ship. The capacity is expected to rise to more than 100 million units by 2020.
This new Berbera Port up-grading project will rival other ports the likes of Mombasa, Djibouti, Port of Sudan and the yet to materialised LAPSSET Lamu Corridor port in handling Ethiopia's imports and exports. Ethiopia wanted 30 percent of its trade to go via Berbera by July last year, according to a five-year growth plan published in 2010.
Source: Dubai Leases Berbera Port for 30 years; Opening 2nd Door for Landlocked Ethiopia
