In brief
- On 11 October 2018, Somaliland Standard reported that construction work on the multi-purpose Berbera port started with a groundbreaking ceremony.
- According to the report, the first phase will consist of building a 400-metre quay and a 250,000 square metre yard extension, as well as the development of a free zone.
- The report gives no contract value, no completion date and no progress since the ceremony.
Contents
On 11 October 2018, Somaliland Standard reported that construction work on the development of the multi-purpose Berbera port had started with a ground-breaking ceremony. That report is the source for the start of work, and it is the limit of what the available record establishes: it does not say what has happened at Berbera since that day.
Who launched the work and what the first phase covers
Somaliland Standard reported, citing the ceremony, that Somaliland President Muse Bihi Abdi and DP World Group Chairman and CEO Sultan Ahmed bin Sulayem launched the first phase of work. According to the same report, that first phase will consist of building a 400-metre quay and a 250,000 square metre yard extension, as well as the development of a free zone to create a new regional trading hub.
The report describes DP World Berbera as a joint venture company that will also serve landlocked countries in the Horn of Africa. On ownership, Somaliland Standard reported that Ethiopia has a 19% stake in the project as a shareholder. It gives no other joint-venture partners or shareholding split.
The contractor and what the report does not establish
Somaliland Standard reported that long-term DP World partner Shafa Al Nahda Contracting had been awarded the construction contract for the port expansion. The same report states that Shafa Al Nahda had been involved in the Port of Dakar expansion in Senegal and the Port of Maputo expansion project in Mozambique. Those statements come from Somaliland Standard's report and are not independently confirmed.
The report does not give a contract value, a contract date or a primary award notice for the Shafa Al Nahda contract. It gives no cost or budget for the first phase beyond its stated scope, and no information on procurement, financing or payment terms. It states no completion date.
What was said at the ceremony
Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO, said construction work had begun and that over the next few years the capacity of the port would be transformed, and that investment in the natural deep-water port and free zone would act as a catalyst and create jobs at many levels. Those are the statements of an interested party, not measured outcomes or commitments.
Muse Bihi Abdi, President of Somaliland, said connecting to landlocked countries such as Ethiopia and the rest of the region would make Somaliland an important player in regional economic integration and growth, and that the importance of the Port of Berbera as a Red Sea gateway for the Middle East and Africa could now be realised. These are also the statements of an interested party.
The article states it was distributed by APO Group on behalf of DP World.
Frequently asked questions
When did work on the Berbera port expansion begin?
Somaliland Standard reported on 2018-10-11 that construction work started with a ground-breaking ceremony.
What does the first phase consist of?
According to Somaliland Standard, the first phase will consist of building a 400-metre quay and a 250,000 square metre yard extension, as well as the development of a free zone.
Does the report give a contract value or completion date?
No. The report gives no contract value, budget or completion date, and no progress since the ceremony.