In brief
- On 22 August 2018, Somaliland Standard reported DP World's plans for Berbera port, including a 30-year concession and up to $442 million investment.
- The report described a joint venture plan, phased investment dependent on volumes, and a conditional construction timeline.
- It did not establish that construction had started, funds had been spent, or that the joint venture was formed.
On 22 August 2018, Somaliland Standard reported that DP World had secured a 30-year concession, with an automatic 10-year extension, to manage and develop a multi-purpose port at Berbera in the Republic of Somaliland. The report, based on Somaliland Standard's coverage, said the concession was won in 2016.
According to Somaliland Standard, DP World would set up a joint venture with the government of Somaliland, with DP World holding 65% control, to manage and invest in the port. The report said total investment of up to $442 million would be phased over time and would depend on port volumes. The first phase would include a 400-metre quay, a 250,000-square-metre yard extension, and gantry cranes and reach stackers for container and cargo handling.
Construction of the quay extension was expected to start 12 months after the satisfaction of the terms and conditions of the agreement, and would take 24 months to complete, according to the report. Somaliland Standard also reported that the port would complement DP World's existing operation in Djibouti and create a regional trading hub with potential for a freezone.
The report did not say whether the joint venture had actually been formed, whether the conditions for construction had been satisfied, or whether construction had started. It gave no figures on expenditure to date and no confirmation of project milestones beyond the announced plans. No contract details or official award notice were provided.
At a port event, the attendance of the Minister of Planning of Somaliland, the Vice Minister of Finance, the mayor of Sahil Region, and the mayor of Berbera was reported by Somaliland Standard. A speech at the event, as cited by the report, described the port's capacity as 3,000 horsepower, a figure that is unclear in its technical specification and context.
Frequently asked questions
What did Somaliland Standard report on 22 August 2018 about DP World and Berbera port?
Somaliland Standard reported that DP World won a 30-year concession with a 10-year extension, planned a joint venture with 65% control, and would invest up to $442 million in phases, starting with a 400-metre quay and yard extension.
Did construction start on the Berbera port expansion according to the report?
The report said construction was expected to start 12 months after satisfaction of conditions, but it did not confirm that those conditions were met or that construction had begun.
Has the $442 million investment been spent?
The report described the figure as a ceiling ('up to $442 million') that would be phased over time and dependent on port volumes. It did not provide any actual expenditure figures.