DP World may be repeating a tactic from before

[Thegoodshepherd]

DP World's deals on the ports of Berbera and Bosaso could be a a way of crippling either port in favor of Djibouti which is the biggest African port managed by DP World. It is also possible that the real deal is Berbera and that DP World is trying to do to Bosaso what it did to Aden. DP World is not to be trusted and these deals are starting to look not very good.

The 2008 deal with DP World, under which the Dubai government-owned company signed a joint venture leasehold agreement with the Yemeni authorities, was supposed to reverse that trend. DP World brought in a subsidiary, Dubai Ports International, to run the container port, and promised to increase traffic. But activity decreased significantly under DP World, and Yemen’s anti-corruption commission – while not alleging corruption – in June last year accused the Dubai company of not fulfilling its contractual investment obligations. DP World did not respond to emails and telephone messages left by the Financial Times. The company has previously described the anti-corruption commission’s claims as “misleading and unfounded”. Analysts say part of Aden’s problem has been external factors beyond the control of either the Yemeni government or DP World, such as international piracy, the global financial crisis and the Arab spring. But critics say another DP World-run port, the east African enclave of Djibouti, which competes directly with Aden, saw considerable growth during the same period. In September 2012, DP World announced that it was quitting Aden port after only four years. The company had come under increasing pressure to cancel the agreement from Sana’a, which had started an investigation into the way the Dubai group won the Aden deal. Mr Wasa’a took over shortly after the Dubai group’s departure and the government is working with the World Bank on a master plan for Aden’s development. Sana’a has also promised $400m for the rejuvenation of Yemen’s ports. But it may be too

https://www.ft.com/content/e64e90fe-8644-11e2-ad73-00144feabdc0

Yemeni officials including Mr Bathib, the transport minister, were unhappy because – they claimed – promises under the contract to raise container traffic from 500,000 20ft-equivalent units a year in 2008 to 900,000 had faltered, with throughput dropping as low as 140,000 a year in 2011. Officials say virtually all of Aden’s historic transshipment business has slipped away, with container traffic moving across the Bab al-Mandab strait, which joins the Red Sea to the Indian Ocean, to nearby Djibouti – another DP World-operated port. DP World has not made a public comment about these allegations and it may yet oppose any move from Yemen to strip it of the contract. .

https://www.ft.com/content/f10ea7f6-00aa-11e2-9dfc-00144feabdc0

Meanwhile Djibouti boomed
http://www.joc.com/port-news/termin...l-benefits-domestic-consumption_20160307.html

 

[xisaabiye]

There's definitely something fishy about it. One of the two ports might also be a fail safe incase things go south in SL or PL

 

[Bahal]

On FM I used to make two fake managers for opposing teams and get them basically relegated.

Same situation here kkkkkkk

 

[merka]

Djibouti will be the main port for the region since all the infrastructure is already set. Berbera will be the 2nd hub since Djibouti port is over capacity dealing with Ethiopia.

I have no idea why Puntland signed with DP world when they've already signed with Berbera. It would have been better to sign with another company to compete one another.

 

[Gilgamesh]

The first article about the Port of Aden being run by a subsidiary Dubai Ports of International is anything to go by, then Puntland got played. Puntland's deal was with the subsidiary P&O Ports while Somaliland signed one with the parent company DP World. They mostly likely do this to protect the parent company's image and avoid being associated with a low traffic, profit generating port.

It's suspicious why they would even be so invested in Bosaso when it's far from Ethiopia's core and populated centers (he highlands) where the overwhelming majority of the goods are going to be imported/exported. Not to mention there is no talks of a road to Ethiopia included in the deal so yeah Bosaso is mostly likely the Aden to our Berbera.

 

[Thegoodshepherd]

The first article about the Port of Aden being run by a subsidiary Dubai Ports of International is anything to go by, then Puntland got played. Puntland's deal was with the subsidiary P&O Ports while Somaliland signed one with the parent company DP World. They mostly likely do this to protect the parent company's image and avoid being associated with a low traffic, profit generating port.

It's suspicious why they would even be so invested in Bosaso when it's far from Ethiopia's core and populated centers (he highlands) where the overwhelming majority of the goods are going to be imported/exported. Not to mention there is no talks of a road to Ethiopia included in the deal so yeah Bosaso is mostly likely the Aden to our Berbera.

Bosaso actually does half of Berbera's business with only one berth. The entire city of Bosaso, the 3rd largest in Somalia, is based on this single berth. There is a lot of bent up opportunity that can be exploited if there was an expansion. It is also possible that both Bosaso and Berbera are being strung along for the sake of keeping Djibouti humming. Berbera does not make sense when you think about how much port expansion is going on in Djibouti, Bosaso makes even less sense. This is all from the perspective of servicing Ethiopia, it is possible DP world sees the importance of these ports from the trans-shipment perspective.

I think we will find out if/when DP World starts bringing cranes to Berbera or when they start pouring concrete in Bosaso.

 

[Gilgamesh]

Yeah only time will tell...I've always believed the French Bollore is the company we should've went with. They were the ones who were initially interested in Berbera before DP World showed sudden interest...probably because they viewed it as a threat to Djibouti.........f*ck this is starting to look really bad nacala I think we've been played.

 

[random12345]

 

[Inactive]

I said this in the beginning that there will be no money invested in the Berbera port. The deal says investment only comes if port volumes increase and investment would be spread out the 30 or 50 years that was signed. Dont you have to invest first so you can expand capacity to see major increases in port volume? How much would be invested every year if there is an increase? What is their definition of an increase? Why would the government agree to this?

Berbera port is too expensive to use and Bosaso has been slowly eating away Berbera's port volume. Also, why would you lay off 25% of port workers once signing the deal when your aim is to expand or at least see an increase in port volumes? It's all lies.

Now we are hit with this bombshell about Yemen.

Berbera and Bosaso port will become ghost ports. What's worse is that DP World will be making money while destroying those ports. What's their cut in port revenue?

Why didn't these clowns get the Chinese or someone else to run the two ports or at least another Arab company?

Somaliland and Puntland will be seeing a decrease in government revenue for the next 5-10 years before they finally wake up and see what bad deals they signed. But it'll be too late by then. They'll be fighting in international arbitration if they even have the balls to stand up to their Arab masters and suggest this route after they get sodomized.

Those ports will become shanty ports at worst or stay at current volumes at best with a foreign company eating with you for free. They are good black obedient slaves.

 

[Inactive]

Invite them to your palace for an hour, bring their flags (even their internet state flags) for a photo-op, call them "ya akhi", start rubbing their chin and their very small goatees, then call them Arab and that is how you manipulate Somalis. It always works. Somalis will get hypnotized.

I am willing to bet good money that the Somalis had no lawyers involved in the drafting or review of the deal while DP World has their own legal department

 

[XamarCade]

I said this in the beginning that there will be no money invested in the Berbera port. The deal says investment only comes if port volumes increase and investment would be spread out the 30 or 50 years that was signed. Dont you have to invest first so you can expand capacity to see major increases in port volume? How much would be invested every year if there is an increase? What is their definition of an increase? Why would the government agree to this?

Berbera port is too expensive to use and Bosaso has been slowly eating away Berbera's port volume. Also, why would you lay off 25% of port workers once signing the deal when your aim is to expand or at least see an increase in port volumes? It's all lies.

Now we are hit with this bombshell about Yemen.

Berbera and Bosaso port will become ghost ports. What's worse is that DP World will be making money while destroying those ports. What's their cut in port revenue?

Why didn't these clowns get the Chinese or someone else to run the two ports or at least another Arab company?

Somaliland and Puntland will be seeing a decrease in government revenue for the next 5-10 years before they finally wake up and see what bad deals they signed. But it'll be too late by then. They'll be fighting in international arbitration if they even have the balls to stand up to their Arab masters and suggest this route after they get sodomized.

Those ports will become shanty ports at worst or stay at current volumes at best with a foreign company eating with you for free. They are good black obedient slaves.

Don't forget uncle Ethiopia will still get his free 20% regardless of what happens

 

[Deactivated]

Invite them to your palace for an hour, bring their flags (even their internet state flags) for a photo-op, call them "ya akhi", start rubbing their chin and their very small goatees, then call them Arab and that is how you manipulate Somalis. It always works. Somalis will get hypnotized.

I am willing to bet good money that the Somalis had no lawyers involved in the drafting or review of the deal while DP World has their own legal department

I read the financials on DP world. Follow the money and you will find problems. This deal will hurt DP world in the long run. They are integrated into 77 countries and 6 continents. Somalia is a low cost investment and annual maintenance will be shred and kept lean. The Port won't be a ghost port, but it will be a lean port. If there's any spills, leaks or any major incident the company won't get reprimanded like other developed countries. It's open season on safety and environmental disasters.

They grew 4.9% in revenue and EBITDA increased by 17.4 with a margin of 54%. The owners are thirsty for dividend returns and the global shipping industry is as consistent as a Yo-Yo.

Before the DP world deal, Somalis were the second largest exporters out of Dubai, next to the Iranians. We depend on Dubai for everything because nobody wants to enter our waters. At this point the country and its emerging private industry needs these ports to bring in goods to develop the country. There is no escaping Arabian investments, if we aren't putting up bonds and raising capital as a country; we will forever be dependent on others.

 

[Deactivated]

Djibouti will be the main port for the region since all the infrastructure is already set. Berbera will be the 2nd hub since Djibouti port is over capacity dealing with Ethiopia.

I have no idea why Puntland signed with DP world when they've already signed with Berbera. It would have been better to sign with another company to compete one another.

This deal can only come from DP world. What they paid for SL and PL is peanuts compared to their other Ports. They barely made earning in the last few quarters. The only reason they keep posting profits is because they are able to cut costs, deplete safety and over look environmental incidents. The Somali ports are the cheapest ports for them to operate.

All in all, this is good news. We have a reliable provider and you can ship products in and out of the country knowing you have fulfilment. I'm just worried about the data gathered by DP world of goods entering the country that might be sold to bidders who can use that for Monterey gain.

The only thing that upsets me is that both SL and PL didn't partner DP world with their own shipping companies and boats. That's the only thing I'm erked about. If we had our own boats, be it even 10% of the ships coming through are Somali owned and operated, this would have help us train crews and establish a marine culture.

 

[Prince Abubu]

On FM I used to make two fake managers for opposing teams and get them basically relegated.

Same situation here kkkkkkk

Is there any trick in the book s won't fall for?

 

[Apollo]

Pure capitalism is just cancer. It always ends up like this without strong government regulation.

 

[Rorschach]

So frustrating to be played by countries who are nothing but lowly pawns themselves; UAE, Kenya, etc.

What's a level below a pawn? Somali - and there is no space for it on the chessboard.

 

[Abdalla]

What's the power sharing formula between PL and DP World? How come we haven't seen the deal.

 

[Thegoodshepherd]

What's the power sharing formula between PL and DP World? How come we haven't seen the deal.

I don't know if Gaas will release it, but we really do need to see that. I doubt it was a good percentage because the deal is an expansion and management one. I hope Puntland got at least 40%.

 

[Abdalla]

I don't know if Gaas will release it, but we really do need to see that. I doubt it was a good percentage because the deal is an expansion and management one. I hope Puntland got at least 40%.

And is the lease payment of 30 million a year or 30 million for the entire 20 year period?

 

[Sixth]

The pizza of East Africa, everyone wants a slice.