In brief
- Horn Diplomat reported on 2022-08-27 that DP World has expanded the Berbera port quay by 400m and installed new cranes operational since June 2022.
- The report states that a container terminal opened in June 2021 and the first expansion phase is complete, but actual container throughput remains low.
- The report does not establish any developments at Berbera port after 2022-08-27.
On 27 August 2022, Horn Diplomat published a report titled "Waiting for Ethiopia: Berbera port upgrade raises Somaliland's hopes for trade." The report details the expansion of Berbera port, located on the Gulf of Aden in the Republic of Somaliland, and examines its potential to capture trade from landlocked Ethiopia.
According to Horn Diplomat, Berbera port is the main overseas trade gateway of Somaliland. The report states that DP World, the Dubai-based port operator, took over management of the port in 2017. Since then, DP World expanded the quay by 400 metres, established a new container terminal, designed a free zone, and began managing operations.
The report notes that the latest crane models became operational at Berbera in June 2022. However, it also states that container ships arrive only infrequently, and the hope of attracting 500,000 TEU per year, about one-third the capacity of Djibouti's Doraleh port, has not been realised.
A container terminal at Berbera Port was opened by DP World and the Government of Somaliland in June 2021, according to the report. The first expansion phase is reported as completed, and the DP World-owned free zone is under construction. Large parts of the Berbera corridor, a highway linking Berbera to Toqwajale at the Ethiopian-Somaliland border and onward to Jigjiga and Addis Ababa, are described as finalised.
Horn Diplomat reports that, according to Somaliland officials, the Berbera airport is completed, though its original designation as a military outlet for the UAE remains ambiguous. The report also states that Ethiopia has not yet opened its markets to Somaliland traders.
The report does not provide evidence of any developments at Berbera port after 27 August 2022. No figures on actual container throughput, progress on the free zone, or any shift in Ethiopian trade patterns are included.
Frequently asked questions
What upgrades have been completed at Berbera port according to the 2022 report?
The report states that the quay was expanded by 400m, a new container terminal was opened in June 2021, and the latest crane models became operational in June 2022. The first expansion phase is reported as completed.
What is the current capacity of Berbera port?
The report does not state a current capacity. It mentions the hope of attracting 500,000 TEU per year, but notes that container ships arrive only infrequently.
What agreements exist with Ethiopia regarding Berbera port?
A 30-year concession agreement was signed in 2017 between DP World, Ethiopia, and the government of Somaliland. It covers a commercial port, free zone, corridor to Ethiopia's borders, and an airport in Berbera. Ethiopia was allocated 19% of port shares.