DP World's P&O Ports wins contract for Puntland port
P&O Ports has won a 30-year concession for the management and development of a multi-purpose port project at Bosasso in the Puntland State of Somalia.
The approximate investment for the modern multi-purpose facility will be USD $336-million divided into two phases: USD $136 million (approx. AED500m) for Phase 1 and USD$ 200 million (approx. 745m) for phase 2.
President of Puntland, Abdiweli Mohamed Ali and the chairman of Ports, Customs & Freezone Corporation (PCFC), Sultan Ahmed bin Sulayem signed the agreement at a ceremony in Dubai in the presence of senior government officials and representatives of PCFC.
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Work on the project will involve building a 450m quay and a 5 hectare back up area, dredging to a depth of 12m with reclamation work using dredge spoil. There will also be major investment in an IT and Terminal Operating System (TOS), mobile harbour cranes and container handling equipment.
The port is the latest agreement for P&O Ports, which was launched by DP World last year as a separate port operating entity for small to medium-sized ports in developing countries. See our full analysis of P&O Ports here.
“This investment is a huge undertaking in Puntland and will greatly contribute to the infrastructure development in Somalia, particularly the Puntland State of Somalia,” said Abdiweli Mohamed Ali. “Infrastructure development is a priority for the government of Puntland as it underpins the efforts of taking this country forward. This concession agreement of expanding the Bosasso port is a major achievement for my government and for the people of Puntland. It promotes the historical and the trade relations between the countries of UAE and Somalia.”
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PCFC chairman, Sultan Ahmed Bin Sulayem, said: “The Port of Bosaso is a unique opportunity to enter into a multi-purpose port that is transitioning to containerization in a country that is growing strongly as it enters a period of sustained peace. It fits ideally into P&O Port’s mandate to invest in multipurpose ports in emerging markets, employing local people and developing skills. In return, the state of Puntland will benefit from an internationally recognized port operator contributing to its economic growth and trade potential”.
The Port of Bosaso is located in Puntland State of Somalia, 2000kms north of Mogadishu. It occupies a strategic location for maritime transport in the Gulf of Aden at the Southern approach to the Red Sea and Suez Canal.