In brief
- On 20 October 2018, Somaliland Standard reported DP World CEO Sultan Ahmed bin Sulayem's comments on the company's Horn of Africa port plans, including its Berbera project in Somaliland.
- The CEO said DP World would consider investing in Eritrea's Assab port if asked, and expressed interest in Kenya's Mombasa port and an Ethiopian logistics facility.
- The report does not establish what has happened since that date regarding the Berbera build, Eritrea, Djibouti, Bossaso, or any other mentioned initiative.
On 20 October 2018, Somaliland Standard reported DP World Ltd.'s plans for ports in the Horn of Africa. The article, sourced from a Bloomberg piece, includes statements from DP World Chief Executive Officer Sultan Ahmed bin Sulayem regarding the company's activity in Somaliland and its potential involvement in Eritrea, Kenya, and Ethiopia.
According to the report, DP World is already building a port at Berbera in the self-declared republic of Somaliland. The CEO said that the Horn of Africa could need a dozen ports to service the region, but declined to specify how many of the 10 to 12 estimated harbors the company is targeting. The report does not state a contract value, funding source, timeline, or completion status for the Berbera project, nor the nature of DP World's involvement beyond "building."
The article says Eritrea may be significant to DP World's plans, citing the country's strategic location near the Bab el-Mandeb Strait. Bin Sulayem said DP World will consider the government's plans at the port city of Assab and "will be there like everybody else" if asked to invest. However, Eritrean Information Minister Yemane Gebremeskel said he couldn't comment on whether the ports of Assab and Massawa will be opened for tender.
DP World's interest extends beyond Somaliland and Eritrea. Bin Sulayem said the company is interested in helping develop Kenya's Mombasa port and in helping Ethiopia establish a logistics facility. These are statements of interest, not commitments, and the report provides no further details on scope or status.
Regarding Djibouti, the report says the government nationalized the Doraleh Container Terminal (DCT) in September 2018, and a U.K. tribunal ruled that Djibouti's cancellation in February of DP World's contract to run DCT was unlawful. Djibouti's ports authority chairman, Aboubaker Omar Hadi, said in an email that he met Bin Sulayem in January to discuss possible compensation, but Bin Sulayem said Djibouti's government has not approached DP World with a settlement offer. DP World is also in arbitration with China Merchants Port Holdings Co. at the Hong Kong International Arbitration Centre over the alleged infringement of DP World's 50-year concession to run the Djibouti terminal; China Merchants bought a stake in DCT in 2012.
In Somaliland, the report notes that the region hosts a United Arab Emirates military facility at Berbera. Bin Sulayem said the base won't have a bearing on DP World's investment plans, adding, "There is no political agenda of the U.A.E. in Africa. Our agenda is trade." The report also states that DP World is involved in the Bossaso port in neighboring Puntland, though it does not specify the nature of that involvement.
The Somaliland Standard report does not establish what has actually happened since its publication on 20 October 2018 regarding any of these initiatives. It provides no evidence of progress on the Berbera build, new agreements in Eritrea, Kenya, or Ethiopia, developments in the Djibouti dispute, or changes at Bossaso. The report is a snapshot of DP World's stated intentions and reported activities as of that date.
Frequently asked questions
What did DP World executives say about Somaliland?
According to the report, DP World CEO Sultan Ahmed bin Sulayem said the company is already building a port at Berbera in Somaliland, and that the UAE military facility at Berbera will not affect DP World's investment plans.
How does Somaliland fit into DP World's broader Horn of Africa strategy?
The report indicates DP World sees Somaliland as one part of a regional port network, alongside potential interest in Eritrea, Kenya, and Ethiopia. The CEO estimated the region could need a dozen ports, but did not specify how many the company is targeting.
What are the implications for future investments?
The report statements are expressions of interest, not binding commitments. It does not establish any funding, timeline, or formal agreements beyond DP World's reported Berbera build and stated willingness to consider other opportunities.