Ethiopia Acquires 19% Stake In DP World’s Somaliland Port

0
42
Cranes unload shipping containers from the ZIM Shenzhen vessel at the DP World Ltd terminal in Tarragona port, Spain, on Wednesday, Aug. 18, 2010. DP World Ltd, the Dubai-based global port operator, has reported a better-than-forecast profit in the first half of 2010 because of cost cuts and higher container volume, Bloomberg has reported. Photographer: Enric Gracia/Bloomberg via Getty Images
PropellerAds

The Dubai company is currently implementing a master plan at the port to add new facilities

Dubai ports operator DP World has announced the government of Ethiopia’s acquisition of a 19 percent stake in Somaliland’s Port of Berbera.

Under the deal, DP World will hold a 51 percent stake in the venture, with Somaliland owning 30 percent and Ethiopia the remaining 19 percent.

PropellerAds

The Dubai company is currently implementing a master plan at the port to add new facilities including an additional berth and cranes, which are scheduled to arrive later this year.

It also announced plans in November to develop an economic free zone next to the port that will eventually cover 12.2 square kilometers.

Read: DP World To Invest Half A Billion In Somaliland Port

“The agreement will help Ethiopia secure an additional logistical gateway for its ever-increasing import and export trade driven by its growing population and economy,” said Ethiopian transport minister Ahmed Shide.

“In addition, Ethiopian participation in the development of the port of Berbera and the Berbera Corridor will help bring increased economic development and opportunity to the people of Somaliland.”

As part of the acquisition, landlocked Ethiopia will invest in infrastructure to develop a trade corridor from its border to Berbera, giving it access to the coast.

Shide said the country will also to continue to invest in the Djibouti corridor and consolidate its use of existing ports in Djibouti.

Read: Djibouti Ends Dubai’s DP World Contract To Run Container Terminal

Last week, the Djiboutian government ended its contract with DP World to run its Doraleh Container Terminal in a move the company described as illegal.

Leave a Reply (Wixii Talo ah noo soo gudbi)