Somalia to terminate port deal with DP World

15 March 2018 (Last Updated March 15th, 2018 09:58)

Somalian Parliament has passed a resolution to cancel a port agreement signed last year between UAE-based operator DP World and the breakaway Somaliland region, banning the port operator to operate in Somalia.

Somalian Parliament has passed a resolution to cancel a port agreement signed last year between UAE-based operator DP World and the breakaway Somaliland region, banning the port operator to operate in Somalia.

The agreement has been declared ‘null and void’ by the Parliament.

This month, DP World signed a deal to provide Ethiopia with a 19% stake in Somaliland’s Berbera port.

Managed by DP World, the Berbera port is primarily used to export camels to the Middle East, as well as import food and other items.

The port also offers transport links for neighbouring Ethiopia, a landlocked nation that is in good terms with Somaliland, reported Reuters.

DP World owns a majority 51% stake in the Berbera port, while the remaining 30% is controlled by the Government of Somaliland.

“DP World owns a majority 51% stake in the Berbera port, while the remaining 30% is controlled by the Government of Somaliland.”

In the resolution cited by Agence France-Presse (AFP), Somalian Parliament said: “It is only the Federal Government of Somalia that can engage in international deals.

“All ports and airports in the country are national property and no one can privately claim ownership.”

However, the Parliament has not revealed a clear roadmap on its future course of action regarding the implementation of the proposed ban.

The ban follows last month’s sudden termination of a port management contract involving the operation of the Doraleh container terminal by another African country Djibouti with DP World.

The move has been cited as illegal seizure by DP World.