Somaliland port deal will be 'catalyst for growth'

1 June 2016

A deal has been struck to modernise the Port of Berbera in Somaliland to provide an “additional gateway” for the Horn of Africa.

DP World group chairman and CEO Sultan Ahmed Bin Sulayem and Somaliland president Ahmed Mohamed Mahamoud have agreed to set up a joint venture to invest in and manage the port as a regional trade and logistics hub.

The $442m project will be phased over time and is dependent on the volumes generated at the port. It will also involve setting up a free zone to help support the development of Berbera’s trade corridors.

DP World said a modernised Port of Berbera would provide an additional gateway for the Horn of Africa to serve land-locked countries along the east coast and encouraging economic diversification.

Sultan Ahmed Bin Sulayem, 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.”

The agreement forms part of a larger Memorandum of Understanding between Dubai and the government of Somaliland to further strengthen their strategic ties, covering areas such as agriculture, fuel storage, industrial development, roads and tourism.

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