DP World wins deal to develop port in Somalia

The Port of Berbera, which will involve an investment of $442m, will represent a new point of access for containers traversing the Red Sea

Somalia’s Port of Berbera will represent a new point of access on the Red Sea.
Somalia’s Port of Berbera will represent a new point of access on the Red Sea.


Dubai-based port operator, DP World, has won a 30-year concession for the management and development of a seaport in Somalia.

The Port of Berbera, which will be located within the Republic of Somaliland, will be developed as part of a joint venture between DP World and the state’s government at an investment of $442m.

DP World will have a 65% share in the JV, with the Somaliland government retaining the remaining 35%.

Commenting on the development, Sultan Ahmad Bin Sulayem, group chairman and CEO of DP World, said: “Investment in this natural deepwater 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.

“Berbera will contribute to our continued growth in the developing markets of Africa in the years ahead. It is also a breakthrough in developing access to the sea for landlocked Ethiopia, the region’s largest economy.”

Saad Ali Shire, the Republic of Somaliland’s Minister of Foreign Affairs and International Cooperation, added: “We are excited to partner with DP World on this landmark project. DP World Port of Berbera will offer East African importers and exporters a unique, additional world-class deep-water port that will dramatically improve the competitiveness of their products in the world markets, and [which] has the potential to transform the region’s economy.”

Phase 1 of the $442m development will involve the construction of a 400m quay and a 25ha yard extension. Gantry cranes and reach stackers will also be installed during this phase.

Construction of the quay extension, which will take approximately 24 months to complete, is expected to start 12 months after the agreement’s terms and conditions have been finalised.

The Port of Berbera focus on containers, and represent a new point of access on the Red Sea.


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