The new facility is expected to lower supply chain costs in the region. Credit: DP World.

United Arab Emirates (UAE)-based DP World has commenced the development of a new edible oil terminal at the Port of Berbera, Somaliland.

The new facility is expected to lower supply chain costs, as well as create vital local jobs in the region.

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With an initial storage capacity of 18,000t, the terminal will be used to serve vessels with a draught of up to 16m.

It will enable Berbera Port to handle bulk imports of edible oil for the first time, stated the company.

Essa Al Ghurair Investments (EGI) subsidiary Mzahim Investment has reached a lease agreement on a long-term basis for the initial phase of the terminal.

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After the recent opening of the Berbera Economic Zone (BEZ), the new terminal is said to be the latest addition to Berbera’s growing trade ecosystem.

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DP World aims to convert Berbera into an integrated maritime, logistics and industrial trade hub to serve the Horn of Africa, a region with a population of more than 140 million people. 

DP World Middle East and Africa CEO and managing director Suhail Albanna said: “Our development of the edible oil terminal is a game changer for the region and is another example of how we are reducing the cost to trade by finding solutions that meet the needs of our customers, while having a positive impact on local communities in terms of job creation and easier access to goods.

“As part of the Berbera port and economic zone ecosystem, this facility is the type of integrated port infrastructure that attracts international investors, such as EGI, looking to get closer to their customers.” 

Earlier this month, DP World announced plans to invest $38m this year for its facilities located on the left bank of Brazil’s Port of Santos.