In brief
- On July 1, 2012, Somaliland Sun reported that the presidents of Somaliland and Somalia had agreed to sell Berbera Port to Dubai Ports World.
- The report cited unnamed sources and did not include any contract or official confirmation.
- No subsequent evidence establishes whether the reported deal was implemented or remains unchanged.
On July 1, 2012, Somaliland Sun reported that the 'newly found comradeship' between Somaliland President Ahmed Mahmoud Silanyo and Somalia's Transitional Federal Government (TFG) President Sheikh Sharif had resulted in the sale of Berbera Port to Dubai Ports World (DPW).
According to the report, operational management of the port, which it calls Somaliland's biggest import and export base, was taken over by DPW after what it describes as a secret meeting in Dubai between DPW and the two presidents. The report says President Silanyo signed a DPW Berbera ports operation contract in secret, originally signed by Sheikh Sharif in Dubai on Thursday June 28, 2012. It states the contract mandates DPW with full operational management of Berbera port and responsibility for infrastructural and human resource development at both the port and Berbera international airport. In return, the report says, the government of Somaliland would receive 35 percent of any and all profits accrued by DP World in the venture.
The report does not cite any document establishing the sale or the contract. No contract value, duration, or scope is given. The names of the anonymous sources are not provided. The profit-sharing basis and calculation method are not stated. No confirmation from DP World, the Somaliland government, or the Somali government is included.
The article links the deal to the Chevening House declaration signed by the Somaliland and TFG governments in London on June 23, 2012, during the first face-to-face meeting between the two sides in 21 years. It reports that the presidents met on the sidelines of an anti-piracy meeting in Dubai and signed a 'Dubai Charter' supporting the Chevening House declaration, and that the Berbera deal was embarked on after signing that charter. It also claims that DP World demanded the TFG co-sign the contract because Somaliland is not recognized as a sovereign country but as a regional administration of Somalia.
The report says Silanyo promised Sheikh Sharif financial support and voters for his presidential re-election bid in August 2012, when the TFG mandate was due to expire. No amounts or numbers are specified.
The article describes DP World as established in 1991, operating more than 60 terminals across six continents, with container handling generating around 80 percent of its revenue. It states the company has 11 new developments and major expansions underway in 10 countries, employs over 30,000 people worldwide, and handled nearly 55 million TEU in 2011. Capacity was expected to rise to around 103 million TEU by 2020. It also notes that Djibouti is in a similar port agreement with DP World.
The 2012 report does not establish what has happened since its publication. No subsequent evidence in the available record confirms that the reported sale or management takeover occurred or that any terms were implemented.
Frequently asked questions
Did Somaliland actually sell Berbera Port to DP World?
No document in the evidence confirms the sale. The Somaliland Sun report is based on unnamed sources and provides no contract or official confirmation.
What was the reported profit share for Somaliland?
The report said Somaliland would receive 35 percent of profits accrued by DP World in the venture, but it did not specify whether this was gross or net or how it would be calculated.
Has the Berbera Port deal been implemented since 2012?
The available record does not say. No subsequent evidence establishes implementation or any change from the 2012 report.