$442m plan to expand Berbera Port

1 July 2021

Somaliland and DP World are opening a new terminal at Berbera Port as a major trade gateway for landlocked neighbour Ethiopia.

The terminal aims to transform the regional economy by turning Berbera into an integrated maritime, industrial and logistics hub.

It has a deep draft of 17m, a 400m quay with three ship to shore gantry cranes, and can handle the largest container vessels.

The terminal increases the port’s container capacity from current 150,000 20-ft equivalent units (TEUs) to 500,000 TEUs annually.

DP World said it planned to invest up to $442m in developing and expanding Berbera Port.

Further work will include extending the quay from 400 to 1,000 metres and installing more gantry cranes.

This will bring capacity to 2m TEUs a year and will allow the port to handle multiple large container vessels at the same time.

The Berbera Corridor free zone, modelled on DP World’s Jebel Ali Free Zone in Dubai, is located on the Berbera to Wajaale road.

“The economic zone will serve as a centre of trade with the aim to attract investment and create jobs, and will target a range of industries, including warehousing, logistics, traders, manufacturers, and other related sectors,” said DP World.

The Abu Dhabi Fund for Development has also funded the Berbera Corridor road upgrade project, which aims to establish fast, efficient trade route to Ethiopia.

Ethiopia plans to expand its capacity to handle imports and exports from a current 17m to 32m tons within the next 10 years, mainly by improvements to ports in Djibouti.

Djibouti currently handles 98% of Ethiopia’s freight, Ethiopian transport minister Dagmawit Moges told state newspaper The Ethiopian Herald.

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