June 01, 2016: DP World Group has signed an agreement with Somaliland government to invest in the multi-purpose Port of Berbera. The $442 million project will be phased over time and is dependent on the volumes generated at the port.
The term sheet agreement to set up a joint venture company to invest in and manage the Port of Berbera will increase its potential for becoming a regional trade and logistics hub. It will also involve the setting up of a free zone to help support the development of Berbera’s trade corridors.
Sultan Ahmed Bin Sulayem, chairman and CEO, DP World Group, said, “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. Our global expertise in marine and inland terminals coupled with our free zone experience will be enable Somaliland to develop and provide a benefit to society for the long term, creating employment for current and future generations.”
It will complement DP World’s services in Africa where it employs around 4,000 people including its existing Doraleh terminal in Djibouti, the most technologically advanced container terminal on the African east coast as well as wider trade through the company’s operations in Egypt, Algeria, Senegal and Mozambique.
The agreement forms part of a larger government to government Memorandum of Understanding (MoU) between the Emirate of Dubai and the Government of the Republic of Somaliland to further strengthen their strategic ties.
DP World will be the lead implementing partner for the MoU, which covers various other areas of co-operation in agriculture, fuel storage, industrial development, roads and tourism. It also builds on the traditional strong ties between the Somaliland community and the UAE, with many dhows along the Dubai Creek still following routes of their ancestors to the ports of Somaliland and East Africa.