DP WORLD WINS 30-YEAR CONCESSION FOR PORT OF BERBERA IN SOMALILAND
Multi-purpose facility to serve as an additional hub in the Horn of Africa
$442 million investment over three phases
Dubai, United Arab Emirates, 5 September 2016: DP World has won a 30-year concession with an automatic 10-year extension for the management and development of a multi-purpose port project at Berbera, Republic of Somaliland. The Port of Berbera opens a new point of access to the Red Sea and will complement DP World's existing port at Djibouti in the Horn of Africa.
DP World will set up a joint venture with 65% control together with the government of Somaliland to manage and invest in the Port of Berbera. The investment of up to $442 million will include a first phase of a 400 metre quay and 250,000 square metre yard extension, and gantry cranes and reach stackers to handle containers and cargo. Construction of the quay extension is expected to start 12 months after the satisfaction of the terms and conditions of the agreement and will take 24 months to complete.
Total investment of up to $442 million will be phased over time and be dependent on port volumes, and will create a regional trading hub along with the scope for a free zone. The project will focus on containers with the capability to handle other types of cargo and will be implemented with the government of Somaliland.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said:
"We are delighted to extend our African footprint with a major investment in Somaliland. 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.
"Berbera will contribute to our continued growth in the developing markets of Africa in the years ahead. It is also a breakthrough in developing access to the sea for landlocked Ethiopia, the region's largest economy. We look forward to bringing DP World's world class productivity-enhancing, security, safety and environmental best practices in container terminal development and operation to Somaliland."
Dr Saad Ali Shire, Minister of Foreign Affairs and International Cooperation, Republic of Somaliland, said:
"We are excited to partner with DP World on this landmark project. DP World Port of Berbera will offer East African importers and exporters a unique, additional world class deep-water port that will dramatically improve the competitiveness of their products in world markets and has the potential to transform the region's economy."
Port of Berbera will complement DP World's network in East Africa by creating a new deep-water gateway for Somaliland's and East Africa's global trade with a range of benefits that include:
· World class deep sea port infrastructure and services at the Port of Berbera, Somaliland which currently has no shore cranes.
· Long-term expansion potential with a concession area of 4.25 square kilometres and over 11 square kilometres of additional available land for a potential free zone.
DP World Limited
About DP World:
DP World1 is a leading enabler of global trade and an integral part of the supply chain.
We operate multiple yet related businesses - from marine and inland terminals, maritime services, logistics and ancillary services to technology-driven trade solutions.
We have a portfolio of 77 operating marine and inland terminals supported by over 50 related businesses in 40 countries across six continents with a significant presence in both high-growth and mature markets. We aim to be essential to the bright future of global trade, ensuring everything we do has a long-lasting positive impact on economies and society.
Our dedicated team of over 37,000 employees from 110 countries cultivates long-standing relationships with governments, shipping lines, importers and exporters, communities, and many other important constituents of the global supply chain, to add value and provide quality services today and tomorrow.
Container handling is the company's core business and generates more than three quarters of its revenue. In 2015, DP World handled 61.7 million TEU (twenty-foot equivalent units) across our portfolio. With its committed pipeline of developments and expansions, the current gross capacity of 79.6 million TEU is expected to rise to more than 100 million TEU by 2020, in line with market demand.
By thinking ahead, foreseeing change and innovating we aim to create the most productive, efficient and safe trade solutions globally.
1 As of April 2016
This information is provided by RNS