Somaliland gears up for ‘healthy’ battle of ports

[codewebsduh]

Somaliland gears up for ‘healthy’ battle of ports

Self-declared state due to compete head to head with Djibouti for Ethiopia’s trade

www.ft.com

 

[fais]

Somaliland gears up for ‘healthy’ battle of ports

Self-declared state due to compete head to head with Djibouti for Ethiopia’s trade

www.ft.com

Somaliland gears up for ‘healthy’ battle of ports​

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The port of Berbera poses a challenge to the dominance of Djibouti in serving the needs of regional giant Ethiopia © Zacharias Abubeker/AFP/Getty Images



Somaliland gears up for ‘healthy’ battle of ports Self-declared state due to compete head to head with Djibouti for Ethiopia’s trade


Anchored at the deepwater port of Berbera, an Ethiopian-flagged ship offloads its cargo of sugar and rice coming from India in what officials hope is a sign of a fresh era of trade in the self-declared east African state of Somaliland.


Thanks to a $442m investment from the Dubai-based ports operator DP World, Berbera is shaping up to regain its centuries-old trade lustre, setting up a battle of ports over a maritime thoroughfare traversed by about a third of ships worldwide. The revamped port of Berbera now offers an alternative to Djibouti as a gateway to lucrative trade routes through the Suez Canal.


Berbera was once the capital of the British Somaliland protectorate. For centuries, until a civil war destroyed much of its facilities three decades ago, it was a hub of maritime trade between the Horn of Africa, the Arabian peninsula, and India thanks to its key location on the Gulf of Aden opposite Yemen.


Now, “we are getting another chance to become an international business centre,” said Berbera’s mayor, Abdishakur Mohamed Hassan. Outside his office, rows of camels and herds of goats are heading to the dock, destined for the port of Jeddah in Saudi Arabia. “There will be a healthy competition between the neighbouring ports,” he added.


Berbera’s terminal, which opened in June, can handle the world’s largest ships. Its container capacity increased from 150,000 20ft containers (TEU) to 500,000 TEU annually, and work is already under way for an expansion to handle up to 2m TEU a year. The main aim of the port is to serve Ethiopia, Africa’s second most populous country, which needs “multiple gateways”, according to Supachai Wattanaveerachai, chief executive of DP World’s port of Berbera.


Eritrea broke away from Ethiopia in 1993, leaving the latter landlocked and reliant on neighbouring Djibouti for port access. Djibouti had remained “almost entirely free of competition” in the region, according to the World Bank which in a report said almost 95 per cent of Ethiopian cargo passed through it. The remainder goes through Port Sudan, in Sudan, and Mombasa, in Kenya.





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Berbera’s resurgence could mark a return to its role as a pivotal port in the late 19th century © Mustafa Saeed/AFP/Getty Images


A 2021 global container port performance index by the World Bank and IHS Markit rated Djibouti as the most efficient port in Africa, measured by minutes per container move. The former French colony has capitalised on its infrastructure and privileged location on the strait of Bab-el-Mandeb, with nearly 1m TEU passing through its ports each year.


But the competition has intensified, with DP World now in Somaliland and going head to head with Djibouti.


“Ethiopia destined cargo does predominantly move through Djibouti port, however there are future alternatives within the area,” said Carl Lorenz, managing director for eastern Africa at container shipping group Maersk. Those options include Berbera and the much-delayed new port in the Kenyan town of Lamu, close to Somalia, which partly opened in May.


Sultan Ahmed bin Sulayem, DP World’s chair, said Berbera would be a viable and efficient option for trade in the region, especially for Ethiopian transit cargo. “We believe that developing the Berbera corridor into one of the major trade and logistics corridors will unlock huge economic benefits for Ethiopia,” he said.


Those ambitions have not been welcomed by neighbours, according to Berbera’s mayor, Hassan. “Djibouti is 100 per cent not happy with the investment DP World made in our port,” he said.


Three years ago, Djibouti seized the container port of Doraleh from DP World. Djibouti argues the company’s goal was to take control of the country’s coastline and that the port was not operated to its full potential. DP World counters Djibouti acted illegally and won several international arbitration cases.


Djiboutian officials have played down any rivalry. Ilyas Moussa Dawaleh, Djibouti’s finance minister, said Berbera would compete “in a way”. Another senior Djiboutian official said their country was in “pole position” as it was closer to the Suez Canal, adding that Djibouti was already a linchpin of global commerce.


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Djibouti has been rated as the most efficient port in Africa measured by minutes per container move © Yasuyoshi Chiba/AFP/Getty Images


Although a road corridor from Berbera to Wajaale, on the Somaliland-Ethiopia border, is due to be completed by 2022, Somaliland requires infrastructure development for which it could not directly receive multilateral financing because it is not an internationally recognised country. And unlike Djibouti, where China has invested heavily, it has relations with Taiwan.


But much depends on the political situation in Ethiopia, the regional giant that is the main customer for the competing ports. Over the past decade, Ethiopia went through an Asian-style economic miracle, growing at a whopping average of 9.4 per cent a year. Then the pandemic struck and an unending civil war started.


Said Hassan Abdullahi, general manager of Somaliland Ports Authority, said Addis Ababa had already missed the deadline for acquiring a stake in the port of Berbera and worries about the war continuing. In July, fighting spread from Tigray to the region of Afar, a transit point between Ethiopia and Djibouti.


“If the war goes on there will be no trade,” he said. “We are building all this infrastructure for Ethiopia. It could be a problem for Somaliland and for Djibouti.”

 

[Wir]

Berbera is the jewel in the crown and the renowned Financial Times is recognizing that Somaliland is making all the right moves

 

[Somalia252]

The beautiful port belongs to all of us. It should never have been sold. I thank our partner the U.A.E for upgrading our strategic port but I think we are better off managing the port ourselves.

 

[0117]

Great article
This thread should be merged with the bigger one

 

[0117]

So the question is will a two-lane Highway be sufficient as a trade corridor or will there be freight services in the near future to make the port more competitive?

 

[fais]

So the question is will a two-lane Highway be sufficient as a trade corridor or will there be freight services in the near future to make the port more competitive?

A railway is definitely on the drawing board in the near future, a 1 KM long duck serving +100 mio. people would need that to extract the full potential..

Ethiopia: Proposed Railway Connection from Berbera Port

This estimated US$1.5 billion project is also known as the ‘port to port connection project’ and is set to be carried out under Ethiopia's 10-year development plan, which was endorsed recently. This port-to-port railway project is not part of the 5,000-kilometer project that the country planned...

www.constructafrica.com

Ethiopia: Proposed Railway Connection from Berbera Port

Ethiopia intends to connect the Berbera port in Somaliland to the Ethio-Djibouti Railway network under a public-private partnership investment arrangement. By Diana Wachira on 7th June 2021 This estimated US$1.5 billion project is also known as the ‘port to port connection project’ and is set to be carried out under Ethiopia's 10-year development plan, which was endorsed recently. This port-to-port railway project is not part of the 5,000-kilometer project that the country planned to develop about a decade ago. During a recent transport inves

tment summit, the proposed railway project was introduced to interested investors. The proposed railway line is estimated to be approximately 310 kilometers from Ayisha. Ayisha is already connected to Berbera Port through the Ethio-Djibouti Standard Gauge Railway.

An interesting part about this project is that most of it will be carried out inside Somaliland’s border. DP World, a Dubai-based port operator, has carried out a huge expansion at the Berbera port. This port is a great alternative for the South and South-Eastern parts of Ethiopia. At the recent transport investment summit, a document from the Ministry of Transport was disbursed. It indicated that only 60 kilometers of the railway project would be within the Ethiopian borders. The remaining 250 kilometers would be within the Somaliland borders.

The document also indicated that this project was expected to open alternative sea access and a crucial international railway corridor to the nation. The project scope was intended to involve constructing a standard gauge railway compatible with the existing Addis Ababa-Djibouti line, port rail connection, railway stations, and auxiliary facilities.

However, the document did not clearly state if the estimated US$1.5 billion cost is only the amount to be financed by Ethiopia, or is the total cost including Somaliland’s share. The Ministry of Transport’s description of the project stated that the proposed railway project would impact all areas along the line, facilitate the development of the port industry, and boost Ethiopia’s economy.

 

[0117]

A railway is definitely on the drawing board in the near future, a 1 KM long duck serving +100 mio. people would need that to extract the full potential..

Ethiopia: Proposed Railway Connection from Berbera Port

This estimated US$1.5 billion project is also known as the ‘port to port connection project’ and is set to be carried out under Ethiopia's 10-year development plan, which was endorsed recently. This port-to-port railway project is not part of the 5,000-kilometer project that the country planned...

www.constructafrica.com

Ethiopia: Proposed Railway Connection from Berbera Port

Ethiopia intends to connect the Berbera port in Somaliland to the Ethio-Djibouti Railway network under a public-private partnership investment arrangement. By Diana Wachira on 7th June 2021 This estimated US$1.5 billion project is also known as the ‘port to port connection project’ and is set to be carried out under Ethiopia's 10-year development plan, which was endorsed recently. This port-to-port railway project is not part of the 5,000-kilometer project that the country planned to develop about a decade ago. During a recent transport inves

tment summit, the proposed railway project was introduced to interested investors. The proposed railway line is estimated to be approximately 310 kilometers from Ayisha. Ayisha is already connected to Berbera Port through the Ethio-Djibouti Standard Gauge Railway.

An interesting part about this project is that most of it will be carried out inside Somaliland’s border. DP World, a Dubai-based port operator, has carried out a huge expansion at the Berbera port. This port is a great alternative for the South and South-Eastern parts of Ethiopia. At the recent transport investment summit, a document from the Ministry of Transport was disbursed. It indicated that only 60 kilometers of the railway project would be within the Ethiopian borders. The remaining 250 kilometers would be within the Somaliland borders.

The document also indicated that this project was expected to open alternative sea access and a crucial international railway corridor to the nation. The project scope was intended to involve constructing a standard gauge railway compatible with the existing Addis Ababa-Djibouti line, port rail connection, railway stations, and auxiliary facilities.

However, the document did not clearly state if the estimated US$1.5 billion cost is only the amount to be financed by Ethiopia, or is the total cost including Somaliland’s share. The Ministry of Transport’s description of the project stated that the proposed railway project would impact all areas along the line, facilitate the development of the port industry, and boost Ethiopia’s economy.

This is very much possible

Instead of connecting to Ayisha, it should connect to Dire Dawa in which three new stations are to be developed which are Hargeisa, Wajaale and Jijiga.
Keep in mind to first even build this railway they will need to build electric power plants to provide energy and a local cement factory

 

[Gantaal97]

The beautiful port belongs to all of us. It should never have been sold. I thank our partner the U.A.E for upgrading our strategic port but I think we are better off managing the port ourselves.

True it belongs to all Somali people in the region and we welcome Puntland or Somalia to come and work together

 

[Wir]

The beautiful port belongs to all of us. It should never have been sold. I thank our partner the U.A.E for upgrading our strategic port but I think we are better off managing the port ourselves.

People from Somalia who use Somalilands Berbera port will be levied with a Special Ajnabi tax, much higher than any other nation. Their truck drivers will be tagged with a GPS tracker until they take their goods back to Somalia, Similar to what we did to Somalias federal region Puntland and their elite business class