Somalia Bans DP World, Says Contract with Somaliland Null
Somalia has banned Dubai ports operator DP World from operating in Somalia, saying that a contract that the company signed last year with the breakaway Somaliland region to develop an economic zone is null and void. It is unclear how Somalia's federal government could enforce the ban given Somaliland's semi-autonomous status. But parliament's unanimous passing of the resolution banning DP World from working in the country underscored growing rivalries in the strategic Horn of Africa region over the Dubai state-owned port operator's investments.
Ethiopia Acquires 19% Stake in DP World Berbera Port
United Arab Emirates-based maritime conglomerate DP World has announced that Ethiopia will become a shareholder of the Port of Berbera in Somaliland, a crucial site for Middle Eastern trade, strategically located along the oil route. As the biggest shareholder of the port of Berbera, DP World announced that it would hold 51 percent stake of the project, the Somalis, 30 percent, and Ethiopia, the remaining 19 percent. The government of Ethiopia will also invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country…
DP World to Manage Somaliland Port for 30 Years
DP World has reached an agreement to manage the Berbera port in Somaliland, which would allow it to become a major hub for goods to transit to and from the Horn of Africa, the Wall Street Journal reported. DP World signed a US$442 million agreement with the government of Somaliland to develop and operate a regional trade and logistics hub at the Port of Berbera. Under the terms of the deal, the newspaper citing a person who has seen the document, Somaliland will grant the Dubai-based company the right to manage the Red Sea port of Berbera for 30 years.
Somaliland to Pick Berbera Port Partner by End of Year
Somaliland expects to choose a partner to develop and manage its Berbera port by the end of the year, with construction expected to start early next year, the breakaway territory's foreign minister said on Wednesday. Mohamed Behi Yonis said the state, which broke away from Somalia in 1991 but is not internationally recognised, was in talks with France's Bollore, the Geneva-based Mediterranean Shipping Company and Dubai's DP World. "Those are the three major port management companies that are interested in developing the port. We have been discussing with all of them," he told Reuters on the sidelines of an African Development Bank meeting in Ivory Coast. "We have not made up our minds. We're looking at all options," he added.
Ethiopia to Use Somaliland’s Berbera Port
Ethiopia is to start using the Port of Berbera of Somaliland this month on an agreement reached between the two countries on January 29, 2015, while the use of Port Sudan has started by the importation of 50,000tn of fertilizer. Ethiopia is distributes its cargo among neighboring countries’ ports as the country needs alternative ports aside that of Djibouti. Workeneh Gebeyehu, Minister for Transport, said, “Five to 10pc of the country’s imports are planned to come through the port of Berbera…