In brief
- Mustaqbal Media reported on 28 July 2021 that DP World aims to make Berbera a major maritime, industrial and logistics hub, especially for Ethiopian transit cargo.
- DP World’s CEO said the new container terminal has a 400-metre quay and three gantry cranes, and increases capacity from 150,000 TEUs to 500,000 TEUs a year.
- The report does not establish what has happened since 28 July 2021, including actual throughput, construction completion or Ethiopian cargo commitments.
Contents
On 28 July 2021, Mustaqbal Media reported that DP World is determined to transform Berbera, a Somaliland port city, into a major maritime, industrial and logistics hub in the Horn of Africa, especially for Ethiopian transit cargo. The report described the strategy as an effort to capture trade from Ethiopia, one of the fastest-growing economies in Africa, according to DP World CEO Sultan Ahmed Bin Sulayem.
What the report says about the terminal
Mustaqbal Media reported that DP World, in partnership with the Somaliland government, recently opened a new container terminal at Berbera Port, with work underway to further expand its capacity. The report did not specify when the terminal opened or provide independent confirmation.
According to the DP World CEO, as reported by Mustaqbal Media, the new terminal has a deep draft quay of 400 metres and three gantry cranes, and is capable of handling the largest container vessels in operation today. He said the terminal increases the port’s capacity from the current 150,000 TEUs to 500,000 TEUs a year. These are stated capacity figures, not measured throughput.
Bin Sulayem said the first phase of Berbera port’s expansion began in October 2018, when President Musa Abdi and he broke ground. He added that two and a half years on, there is a modern, world-class infrastructure asset improving operational efficiency and productivity.
Economic zone and bulk facility
DP World is also rapidly developing the Berbera Economic Zone (BEZ), according to the same report. The CEO said the BEZ is modelled on Jebel Ali Free Zone (Jafza) in Dubai and will provide local and foreign investors with prebuilt warehousing facilities, serviced land plots, and office and business centre spaces. These facilities are described in future tense and their current status is not established by the report.
Separately, DP World is building a state-of-the-art facility that can store goods in bulk and allow companies to package edible oil locally, replacing pre-packaged container imports, according to the report. No completion date or cost is given.
Bin Sulayem said the BEZ, combined with the port development, will support Ethiopia as it seeks to bolster export competitiveness. He noted Ethiopia aims to reach lower-middle-income status by 2025. No trade agreement or cargo commitment from Ethiopia is reported.
The report does not name a contractor, consultant or financier for any of the works, and no contract value, project cost or funding terms are given. It also does not state actual port throughput figures.
What the report does not establish
Beyond 28 July 2021, Mustaqbal Media’s report does not establish what has happened at Berbera, the BEZ or with Ethiopian transit trade. It does not confirm the terminal’s opening through a primary record, nor does it show that any capacity targets have been met. The report projects support for Ethiopia but does not state that Ethiopia has agreed to route cargo through Berbera.
The next concrete indicators would be construction progress on the expansion and BEZ, any Ethiopian government or importer decisions on using the corridor, and actual berth or throughput data from the port. None of those facts are in evidence as of 28 July 2021.
Frequently asked questions
What incentives or advantages is Berbera offering?
The DP World CEO, as reported by Mustaqbal Media on 28 July 2021, said the BEZ will offer prebuilt warehousing, serviced land plots, and office space, modelled on Jafza, and the terminal can handle the largest container vessels. No specific incentives or rates are given.
How much Ethiopian trade currently goes through Djibouti?
The report does not give figures for Ethiopian trade through Djibouti, nor does it quantify current Ethiopian cargo volumes through Berbera.
What infrastructure improvements are underway to handle increased traffic?
Mustaqbal Media reported that work is underway to expand the container terminal’s capacity and that DP World is building a bulk storage and edible oil packaging facility, and rapidly developing the Berbera Economic Zone. No schedules or completion dates are provided.