Transforming Berbera into a world-class centre of trade

ZodiaK

VIP
Sultan Ahmed Bin Sulayem

Sultan Ahmed Bin Sulayem
Group Chairman & CEO of DP World

Last month, I joined Muse Bihi Abdi, President of Somaliland, Ahmed Shide, Minister of Finance of Ethiopia, Dagmawit Moges, Minister of Transport of Ethiopia, and Mustafa Mohammed Omar, President of the Somali Regional State in Ethiopia, to officially inaugurate the new container terminal at Berbera Port, following completion of the first phase of its expansion.

The inauguration is a milestone in DP World’s partnership with the government of Somaliland. Together, we are realising our shared vision, long-term confidence, and intention to transform Berbera into a major maritime, industrial, and logistics hub in the Horn of Africa, especially for Ethiopian transit cargo.

Unlocking prosperity in the Horn of Africa

The Horn of Africa, home to the port city of Berbera, and with a population of more than 140 million people, is dynamic and ever-evolving. Despite the economic shocks of the pandemic, the region has showcased remarkable resilience, managing to grow by 0.88% in 2020. A testament to its growing consumer markets, natural commodities, and strategic location with excellent access to some of the world’s major trade sea lanes and land routes, from the Suez Canal to the Strait of Malacca.

However, the sharp decline in remittance levels and significantly reduced livestock exports to the GCC resulting from the pandemic are crucial issues the government will need to grapple with in the years to come to ensure a robust recovery.

A boost to trade competitiveness is a central focus of Berbera and the region as a whole. We stand ready to support its economic recovery through our activities at Berbera port and Berbera Economic Zone (BEZ) and I am confident that our continued investments will enable the region to capitalise on its post-Covid growth and growing FDI flows from markets such as South Korea.

A successful first phase of port expansion

Infrastructure is critical to economic recovery.

The first phase of Berbera port’s expansion began in October 2018, when President Abdi and I broke ground to start construction. Just two and half years on, we have a modern, world-class infrastructure asset that helps improve operational efficiency and productivity to meet growing demand. The new terminal, with a deep draft quay of 400 metres and three gantry cranes, is capable of handling the largest container vessels in operation today and increases the port’s capacity from the current 150,000 TEUs to 500,000 TEUs a year.

We are building a Berbera fit to handle the demands of today’s trade economy, whilst helping expedite its progress towards a self-reliant society. For example, edible oil was previously brought in pre-packaged containers, but now DP World is building a state-of-the-art facility that can store goods in bulk, and allow companies to package them locally.

But our work to develop Berbera into a major port in the Horn of Africa and for Eastern Africa does not stop there. Work is already underway to further expand the port in a second phase. This phase, a crucial part of our commitment to invest up to $442 million at Berbera port, will include an extension of the new container terminal’s quay by more than twice its current length, to a total of 1,000 metres. We will also be installing additional quay cranes to increase the port’s handling capacity to up to 2 million TEUs a year.

How we will bring FDI and jobs to Berbera and its neighbours

Moreover, to maximise the economic potential of Berbera’s strategic location and the benefits that will follow from the port’s ability to handle increased levels of trade, we are also rapidly developing the Berbera Economic Zone (BEZ).

Modelled on Jebel Ali Free Zone (Jafza), our flagship Free Zone in Dubai, BEZ will provide local and foreign investors with a conducive and competitive environment for investment and trade through readily available infrastructure including prebuilt warehousing facilities, serviced land plots, and office and business centre spaces. The BEZ, combined with the increased power of the Berbera port development, will also support Somaliland’s fast-growing neighbour, Ethiopia, as it seeks to bolster the export competitiveness of its manufacturers.

Ethiopia is one of the fastest growing economies in Africa and its policymakers and business leaders continue to be well poised to maximise results from improved national productivity as it aims to reach lower-middle-income status by 2025. I have no doubt that the new container terminal at Berbera Port and the BEZ can play an instrumental role in helping achieve this goal and the government’s 10-year perspective plan by offering Ethiopia opportunities for trade, infrastructure investment, and employment.

I am grateful to our customers, partners, suppliers, and the local community in Berbera, for their continued support, as well as our teams at DP World Berbera and in Dubai, for their hard work to successfully deliver this project. It is trade infrastructure that has ensured the region’s resilience, and it will be improved trade infrastructure that will fuel its recovery and growth.
 

angelplan

Staff Member
2020 CHESS CHAMP
BORAMA, AWDAL
Berbera in particular and Somaliland in general should avoid the Djibouti curse (epic port yet wealth not felt by average people). This why a percentage should be invested back in Berbera and the respective region Sahil. That should be used to build Sahil and Maroodi jeex. Development should be felt there Inchallah. Can not wait to cruise from Gebiley to Berbera and back to Hargeisa in highways.
 
Berbera in particular and Somaliland in general should avoid the Djibouti curse (epic port yet wealth not felt by average people). This why a percentage should be invested back in Berbera and the respective region Sahil. That should be used to build Sahil and Maroodi jeex. Development should be felt there Inchallah. Can not wait to cruise from Gebiley to Berbera and back to Hargeisa in highways.
Absolutely agree.

However, I don't think there is any chance of Somaliland being anything like Djibouti when it comes to managing the wealth generated from Berbera port.
The problem Djibouti has is that it is a dictatorship with practically zero accountability placed on the government.
Somaliland is far from perfect in that regard also, but it is much better than Djibouti. It has a vocal opposition party, a very political electorate who are very engaged in the competence of their government and pretty effective, largely independent press. That is not to say that corruption isn't a problem in Somaliland, it absolutely is, just that the mismanagement of the largest infrastructure project the country has ever would be transparent and not something that the government could get away with.

There is a provision in Somaliland law that states a percentage of the wealth generated from Berbera Port, will go back into the development of Saaxil.
 

ZodiaK

VIP





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wingu.africa group limited (“Wingu”) is pleased to announce the first phase of its Berbera, Somaliland carrier-neutral data center was commissioned on 13 February 2021 and is now ready for service.


The facility is the first of its kind in Somaliland and is designed to meet Wingu’s customers’ growing demand for digital services.


The data center, as with all Wingu’s facilities, provides open-access to all customers and brings to Somaliland Wingu’s well-established commercial eco-system, developed over 10 years of operating history in East Africa. Local and international customers will benefit from this critical infrastructure, enjoying improved internet speed, reliability, resilience, and enhanced ability to access cloud-based services and other features.


Commenting on the experience of establishing Wingu’s first facility in Somaliland, Mr Anthony Voscarides, Group CEO, noted that “The support and responsiveness of key agencies, Ministries and the Government have been exceptional, allowing us to commission the facility in only five months.”


Mr Demos Kyriacou, Deputy CEO and Chief Operating Officer, added, “The second phase for the Berbera data center is already under preparation and is expected to be operational later this year, as we have received encouraging interest from customers. We look forward to building our business and continuing to offer the highest quality services in the market.”


Wingu is a specialist carrier-neutral data center owner and operator focused on East Africa, and the data center in Somaliland is the latest in a series of new locations being developed, including Addis Ababa, Dar es Salaam and a second facility in Djibouti.
 

ZodiaK

VIP

Somcable Submarine Network Welcomes the 2Africa Cable in Berbera​

On 25 of May 2022 , Somcable Submarine Network welcomed the 2Africa cable to Berbera in a local ceremony hosted at the Somcable International Submarine Hub which was attended by the senior management team and Government officials of Somaliland.

This was the second submarine cable to land in Bebera in the month of May 2022.

2 Africa cable is the largest submarine cable to be built. According to the consortium, 45,000km is length and runs between 33 countries in Europe, Africa and Asia, with 46 landings it will be the longest subsea cable ever deployed, “serving communities that rely on the internet for services from education to healthcare and business, with all experiencing the economic and social benefits that come from this increased connectivity.”

The 2Africa subsea cable system together with its Pearls extension is designed to deliver international connectivity to approximately 3 billion people, representing 36% of the global population and connecting three continents, Africa, Europe, and Asia.
 

ZodiaK

VIP



Much needed competition & capacity!

NOC
National Oil Company is a world class 1 million cubic meters onshore oil storage facility. We are an independent third party storage terminal, store Crude oil, Fuel oil, Gasoil and Gasoline. The storage facility meets international standards, and attracts independent major and national oil companies to lease and utilise the facilities on a long-term sustainable basis.

The first phase of this project will have the capacity to store enough cooking oil to cover Somaliland's needs for a year! Good start & better late than never.
 
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Much needed competition & capacity!

NOC
National Oil Company is a world class 1 million cubic meters onshore oil storage facility. We are an independent third party storage terminal, store Crude oil, Fuel oil, Gasoil and Gasoline. The storage facility meets international standards, and attracts independent major and national oil companies to lease and utilise the facilities on a long-term sustainable basis.

The first phase of this project will have the capacity to store enough cooking oil to cover Somaliland's needs for a year! Good start & better late than never.
MaashaAllah, we shall eat good soon InshAllah!

:rejoice::rejoice::rejoice:
 
What are the 2019 and 2020 figures? The figures could've contracted during Covid then rise again. Nevertheless, impressive.
I'm not sure to be honest. It is likely that the numbers would have contracted at least some from 2019 to 2020 as a result of Covid.

The key is that the number should continue to rise since the major redevelopment and ongoing further expansion.

This recent increase YoY is a good indicator that those improvements are bearing fruit.
 
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