DP World has signed a deal with the government of Somaliland to manage the port of Berbera on the eastern coast of Africa.
A joint venture company will be established to invest in and manage the Port of Berbera, while the investment worth US$42 2 million will be carried out in phases and will be subject to the port’s volume.
The deal is expected to provide an economic boost to the Horn of Africa and the other land-locked countries along the east coast by turning the port into a regional trade and logistics hub.
The port will add to DP World’s services in Africa which employs around 4,000 people at ports in Djibouti, Egypt, Algeria, Senegal and Mozambique.
DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said: "The Horn of Africa has been a trading partner of Dubai throughout history and we are delighted to support the Emirate of Dubai in its agreement with the government of Somaliland for wider economic cooperation across a range of sectors.
"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 is also expected to improve the diplomatic ties between the Emirate of Dubai and the Government of the Republic of Somaliland, and is part of a wider agreement which covers other areas of cooperation including agriculture, fuel storage, industrial development, roads and tourism.
Image: Ship docked at the port of Berbera. Photo: courtesy of Mokonono.