DP World wins 30-year concession for port of Berbera in Somaliland
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, the company said in its press release.
The Port of Berbera opens a new point of access to the Red Sea and will comple ment 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 $442 million will include a first phase of a 400 metre quay and 250,000 square metre 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 $442 million 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.
Port of Berbera will complement DP World’s network in East Africa by creating a new deep-water gateway for Somaliland ’s and East Africa’s global trade with a range of benefits that include:
• World class deep sea port infrastructure and services at the Port of Berbera, Somaliland which currently has no shore cranes.
• Long -term expansion potential with a concession area of 4. 25 square kilometres and over 11 square kilometres of additional available land for a potential free zone.
