Ethiopia Takes 19 Pct Stake in DP World Berbera Port
- Business & Finance
Ethiopia has signed an agreement with Dubai-based port operator DP World and the Somaliland Port Authority to acquire a 19% stake in the Port of Berbera.
Following the deal, which was signed in Dubai on March 1, DP World will hold a 51% stake in the project, Somaliland 30% and Ethiopia the remaining 19%.
The government of Ethiopia will invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country, and there are also plans to construct an additional berth at the Port of Berbera.
The berth would be built in line with the Berbera master plan, which DP World has already started implementing, while adding new equipment to further improve efficiencies and productivity. The first cranes are scheduled to arrive later this year.
“After a year of serious negotiations, Ethiopia has concluded an agreement with the Somaliland Ports Authority and DP World that will give the Government of Ethiopia 19% stake in the joint venture developing the Port of Berbera,” Ahmed Shide, Ethiopian Transport Minister, said.
The Minister explained that the agreement will help Ethiopia secure an additional logistical gateway for its import and export trade.
Ethiopia will continue to further invest in and develop the Djibouti corridor and further consolidate the use of existing ports in Djibouti. According to Shide, it will also look for other opportunities to develop additional ports and logistics corridors in the region.
“The ports of Berbera and Doraleh will provide significant capacity to the region. Both these ports and more capacity will be needed to serve the region’s growth potential in the future,” Ahmed Bin Sulayem, DP World Group Chairman and CEO, said.