In brief
- On 10 November 2017, Horn Diplomat reported opposition candidate Abdirahman Irro's criticism of the $440 million, 30-year DP World deal for Berbera port.
- DP World announced a four square kilometre free trade zone one week before the election, but details were to be negotiated with the new government.
- The report does not establish what happened after the election, leaving the project's future uncertain.
On 10 November 2017, Horn Diplomat reported that opposition candidate Abdirahman Irro criticized the Somaliland government's $440 million deal with DP World for a 30-year lease on Berbera port, according to the publication. The report, by MarEx and dated 2017-11-09 20:00:25, sourced to Maritime Executive, highlighted how the port concession became an election issue ahead of the presidential vote.
Irro was quoted as saying his party welcomes investment projects in Berbera but that "investment deals shouldn’t be conducted under the table." He also promised to review all deals signed by the current administration. In contrast, Faisal Ali Waraabe, candidate of incumbent party UCID, was described by Horn Diplomat as broadly supportive of the port concession and the economic opportunities it brings.
Waraabe said the port will be expanded and upgraded, that they are currently entering the first phase, and that a second expansion phase will follow. He added, "When I am elected president, I will complete these projects for you all, god willing." These are political claims, not verified construction milestones.
On November 6, one week before election day, DP World announced it would invest in the development of a four square kilometre free trade zone at Berbera, modeled on its Jebel Ali Free Zone in Dubai, according to Horn Diplomat. The proposed Berbera Free Zone would target warehousing, logistics, import/export, manufacturing and related industries, but the details would be negotiated with Somaliland's new government after the elections.
DP World also said it intends to continue investments in its Berbera master plan, including an additional container terminal. Horn Diplomat reported that DP World has already purchased two reach stackers, 10 internal transfer vehicles and five forklifts for the port, though no delivery dates or contract values were given. DP World said the first new cranes are scheduled to arrive next year.
DP World claimed that under its management, container volumes at Berbera have hit record levels, and that in September the port posted a 40 percent increase over the same period last year. No base year or absolute figures were provided.
The report noted that the Port of Berbera's future may depend in part on the results of Somaliland's upcoming presidential election. However, the Horn Diplomat article does not establish what happened after the election: whether the deal was reviewed, the free zone negotiations concluded, or the expansion phases progressed. Those developments remain outside the scope of the 10 November 2017 report.
Frequently asked questions
What are the political criticisms of the Berbera port deal?
Opposition candidate Abdirahman Irro criticized the $440 million deal with DP World for a 30-year lease, saying investment deals should not be conducted under the table and promising to review all deals signed by the current administration, according to Horn Diplomat.
What impact could the election have on the project?
Horn Diplomat reported that the port's future may depend in part on the election results, as the details of the proposed free trade zone would be negotiated with the new government, but the report does not establish what happened after the election.
What is the status of the port expansion?
UCID candidate Faisal Ali Waraabe claimed the port is entering the first phase of expansion with a second phase to follow, and DP World announced investment in a free trade zone and an additional container terminal, but the report provides no verified construction progress or completion data.