Dubai ports operator DP World has announced the government of Ethiopia’s acquisition of a 19 per cent stake in Somaliland’s Port of Berbera.
Under the deal, DP World will hold a 51 per cent stake in the venture, with Somaliland owning 30 per cent and Ethiopia the remaining 19 per cent.
The Dubai company is currently implementing a master plan at the port to add new facilities including an additional berth and cranes, which are scheduled to arrive later this year.
It also announced plans in November to develop an economic free zone next to the port that will eventually cover 12.2 square kilometres.
“The agreement will help Ethiopia secure an additional logistical gateway for its ever-increasing import and export trade driven by its growing population and economy,” said Ethiopian transport minister Ahmed Shide.
“In addition, Ethiopian participation in the development of port of Berbera and the Berbera Corridor will help bring increased economic development and opportunity to the people of Somaliland.”
As part of the acquisition, landlocked Ethiopia will invest in infrastructure to develop a trade corridor from its border to Berbera, giving it access to the coast.
Shide said the country will also to continue to invest in the Djibouti corridor and consolidate its use of existing ports in Djibouti.
Last week, the Djiboutian government ended its contract with DP World to run its Doraleh Container Terminal in a move the company described as illegal.