The battle of the ports between Berbera in Somaliland and Mogadishu in Somalia has escalated in the maritime trade arena, with Berbera showcasing clear superiority over Mogadishu in various aspects.
A comparative analysis of their performance reveals the significant lead that Berbera has established over its counterpart.
The Genesis of Berbera Port
Berbera Port, strategically located in the Republic of Somaliland, has emerged as a vital gateway for trade in the Horn of Africa. Managed by DP-World, a global leader in port operations, Berbera Port has witnessed significant growth and development in recent years.
Its state-of-the-art infrastructure, efficient operations, and strategic partnerships have positioned it as a preferred choice for shipping lines and businesses looking to tap into the burgeoning East African market.
The Challenges Faced by Mogadishu Port
In contrast, Mogadishu Port, operated by Albayrak, has faced a myriad of challenges that have hindered its growth and competitiveness. Political instability, security concerns, and operational inefficiencies have plagued the port, impacting its ability to attract investments and expand its services. Despite being situated in the capital city of Somalia, Mogadishu Port has struggled to keep pace with the rapid advancements seen at Berbera Port.
Import Volumes and Port Calls
In February alone, Berbera Port managed to import an impressive 6,700 containers, far surpassing Mogadishu’s figure of 3,600 containers. This disparity is further highlighted by the number of port calls, with Berbera recording 11 calls compared to Mogadishu’s 7 over the same period, indicating a higher level of activity and efficiency at Berbera port.
Total Container Throughput
When it comes to total container throughput, Berbera Port processed a substantial 10,000 containers in the last 30 days, while Mogadishu handled only 6,000 containers. This significant gap underscores the superior efficiency and capacity of Berbera Port, showcasing its ability to handle a larger volume of cargo with greater effectiveness.
Implications for Port Development
The stark contrast in performance between Berbera and Mogadishu ports emphasizes the critical role of strategic investment and management expertise in port development. Berbera Port, under the management of the United Arab Emirates’ DP-World, has consistently outperformed Mogadishu Port, which is operated by Albayrak Group, a Turkish state-owned enterprise. This performance gap suggests that DP-World’s approach to port development and investment has been more successful compared to Albayrak’s of Turkey.
Container Cost Fees
One notable difference between the two ports is the cost of container fees, with Berbera port generally offering lower fees compared to Mogadishu port. Factors such as infrastructure, operational efficiency, political stability, and security conditions in the respective regions contribute to this cost differential. Berbera Port’s partnership with DP World has led to infrastructure upgrades and increased capacity, resulting in improved efficiency and lower costs for shipping companies. In contrast, challenges such as corruption, inefficiency, and security issues at Mogadishu port have contributed to higher container fees.
Overall, shipping companies may find it more cost-effective to utilize Berbera port for their container shipments due to its lower fees and enhanced operational efficiency. However, factors like proximity to final destinations, transportation infrastructure availability, and trade routes may also influence decision-making processes.
Here is some interesting data: Berbera port’s 20ft container freight rate is $650 Built by DP World vs. Mogadishu Port, modernized by Turkish, the freight rate is a whopping $3860.
Ranking and Position
According to the World Port Performance Index for Container Services by the World Bank, Berbera Port has achieved significant recognition, ranking 2nd in Sub-Saharan Africa and 144th globally. This marks a notable advancement from its previous global rank of 165. In comparison, Mogadishu Port ranks 7th in Sub-Saharan Africa and 221st globally, highlighting the substantial lead that Berbera has established.
The rankings underscore Berbera Port’s potential as a pivotal hub for international trade and regional economic development, attracting global attention. The World Bank’s evaluation praises Berbera Port’s strategic location and infrastructure enhancements, placing it ahead of ports like Mombasa in terms of efficiency and service quality.
Conclusion
In conclusion, the battle of the ports between Berbera and Mogadishu paints a clear picture of Berbera’s dominance in various key metrics such as import volumes, port calls, container throughput, and cost efficiency. The success of Berbera Port, under the management of DP World, highlights the importance of strategic investment and effective management in port development, setting a benchmark for other ports in the region to aspire to. As the maritime trade landscape continues to evolve, Berbera Port is well-positioned to maintain its dominance and play a vital role in the economic development of Somaliland and the wider region.
Guled Wiliq originated some of the data that was used in this article.
