DP World Announces Berbera Port Concession in Somaliland

On 6 September 2016, Horn Diplomat reported that DP World had announced it won a concession to manage and develop a port at Berbera in Somaliland.

DP World said the concession would last 30 years, with a 10-year automatic extension. The Dubai-based ports operator also said it would own 65% of a joint venture with the government of Somaliland to manage and invest in the port. DP World did not explicitly state the ownership of the remaining 35%.

According to the report, DP World planned an investment of up to $442 million to expand port infrastructure, phased according to port volumes. These figures come from DP World's own statements; the report provides no independent confirmation of the concession terms or investment plan.

Horn Diplomat noted that The Wall Street Journal had reported the deal in May (the year was not specified). In the same story, Horn Diplomat said DP World had posted a 50.2% rise in first-half profit the previous month as it added capacity at terminals in Turkey, Germany, Canada and Dubai.

The report does not establish any subsequent progress: no commencement of works at Berbera, no actual investment spent, no changes to the concession or joint venture structure. Since the 2016-09-06 report, no updates are provided in the supplied material.