DP signs US $442m port deal in Africa
DP World intends to expand further across Africa following a deal to create a new gateway in Somaliland, on its eastern coast.
DP World chairman Sultan bin Sulayem, was quoted saying: "I am very bullish about Africa and I believe it still has a very huge potential.
"The reason why we go to Africa is because we get a lot of knowledge and experience and they are the two factors for success."
DP World signed a US $442-million agreement with the government of Somaliland to develop and operate a regional trade and logistics hub at the Port of Berbera. The phased project will include the establishment of a free zone.
As part of a larger government-to-government memorandum of understanding between the Dubai and the government of the Republic of Somaliland to further strengthen strategic ties, this agreement is scheduled to finalise by July, according to Saad Ali Shire, the minister of foreign affairs and international cooperation of Somaliland.
Ali Shire told reporters: "This agreement is opening a new chapter to gaining foreign investment by Somaliland. This deal should enhance job opportunities to youth of the country."
DP World has existing operations in Senegal, Egypt, Mozambique, Djibouti and Algeria, and Berbera port will be the eighth DP world operation in Africa when completed.
Over past five years DP World has invested over $1 billion in capex and added 2,275,000 twenty foot equivalent units (TEU) of capacity at its terminals in Africa, bringing the total annual capacity to 6.2 million TEU.
The Berbera port will become a hub and sea route, primarily for the Ethiopian market, complementing DP World’s services in the Doraleh terminal in Djibouti and also supporting growth in its Jebel Ali port in Dubai.
The investment in Berbera includes the placement of gantry cranes, tug boats and high-tech container storage machinery.