Expanded port will transform Berbera into a logistics hub

The expanded port and economic zone of the Berbera corridor in Somaliland will transform Berbera into an integrated maritime, industrial and logistics hub in the horn of Africa. Image credit: Wikimedia.Commons

27 June 2021 – The expanded port and economic zone of the Berbera corridor in Somaliland will transform Berbera into an integrated maritime, industrial and logistics hub in the horn of Africa

Logistics company DP World, last week inaugurated the new container terminal at Berbera Port, following completion of the first phase of the port’s expansion as part of its development into a major regional trade hub to serve the Horn of Africa.

The new container terminal with a deep draft of 17m, a quay of 400m and three ship to shore (STS) gantry cranes, can handle the largest container vessels in operation today, and increases the port’s container capacity from current 150,000 Twenty Foot Equivalent Units (TEUs) to 500,000 TEUs annually.

The terminal also includes a modern container yard with eight rubber tyred gantry cranes (RTGs). A new port One Stop Service Centre is also currently being built and will be ready in quarter three this year.

DP World has committed to invest up to USD442-million to develop and expand Berbera Port, and the first phase is now complete.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, says that work is already underway to further expand the port in a second phase.

“This includes extending the new quay from 400m to 1,000m, and installing a further seven STS gantry cranes, increasing the total from three to 10, enabling the port to handle up to two million TEUs a year, and multiple large container vessels at the same time,” says bin Sulayem.

Strategic location in Berbera Corridor

Part of the overall Berbera plan and modelled on DP World’s Jebel Ali Free Zone in Dubai, the economic zone is linked to the port and strategically located along the Berbera to Wajaale road (Berbera Corridor).

The economic zone will serve as a centre of trade with the aim to attract investment and create jobs, and will target a range of industries, including warehousing, logistics, traders, manufacturers, and other related sectors.

It will allow producers, suppliers, and customers to operate in a conducive and competitive environment for investment and trade.

The Berbera Corridor road upgrade project, funded by the Abu Dhabi Fund for Development (ADFD) and the UK’s Department for International Development (DFID), and the Hargeisa Bypass Road funded by UK Aid, is set for completion in quarter four, 2021 and quarter three 2022, respectively.

The road will link to the existing modern highway on the Ethiopian side and position Berbera as a direct, fast, and efficient trade route for Ethiopian transit cargo.

According to His Excellency Muse Bihi Abdi, President of Somaliland, the completion of the first phase has made their vision of establishing Berbera with its strategic location into a major trade hub in the region a reality. “With the new terminal, along with the second phase of expansion and economic zone along the Berbera corridor, we are now firmly positioned to further develop and grow our economy through increased trade, attracting foreign direct investment and creating jobs.”

DP World increases volumes

DP World Berbera, which began operations at the port in March 2017, has since increased volumes by 35% and vessel productivity by 300%, and reduced container vessel waiting time from four to five days, to only a few hours.

DP World and the Ethiopian Ministry of Transport signed a Memorandum of Understanding (MoU) in May this year, with the aim of developing the Ethiopian side of the road linking Addis Ababa to Berbera, into one of the major trade and logistics corridors of the country’s international trade routes.

The expanded port and economic zone of the Berbera corridor in Somaliland will transform Berbera into an integrated maritime, industrial and logistics hub in the horn of Africa.

Distributed by APO Group on behalf of DP World.

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