UAE to invest into the Berbera corridor 1 billion dollars deal signed with Ethiopia and partners

[Khalid Ali]

Dubai's DP World and Ethiopia strike $1bn deal to develop trade and logistics corridor
Infrastructure will be developed to build dry ports, silos, warehouses, container yards and other facilities
Sultan Ahmed Bin Sulayem, chairman and chief executive of DP World, and Dagmawit Moges, Ethiopia's Minister of Transport, sign a memorandum of understanding in Addis Ababa on Thursday to develop a trade and logistics corridor. Courtesy: DP World
Sultan Ahmed Bin Sulayem, chairman and chief executive of DP World, and Dagmawit Moges, Ethiopia's Minister of Transport, sign a memorandum of understanding in Addis Ababa on Thursday to develop a trade and logistics corridor. Courtesy: DP World
Deepthi Nair
Deepthi Nair
May 6, 2021

Dubai-based ports operator DP World and Ethiopia’s Ministry of Transport signed an agreement to develop the road linking Ethiopia to Berbera in Somaliland into a trade and logistics corridor.

DP World and its partners plan to invest up to $1 billion over the next 10 years to develop supply chain infrastructure along the corridor, the company said in a statement on Thursday. This will include dry ports, silos, warehouses, container yards, cool and cold chain depots, freight forwarding and clearing activities, the company said.

The agreement was signed in Addis Ababa on Thursday by Dagmawit Moges, Ethiopia’s Minister of Transport and Sultan Bin Sulayem, DP World's chairman and chief executive.

Developing the Berbera corridor into one of the major trade and logistics corridors will unlock huge economic benefits for Ethiopia

Sultan Bin Sulayem, chairman and chief executive of DP World

“We believe that developing the Berbera corridor into one of the major trade and logistics corridors will unlock huge economic benefits for Ethiopia and support its ambitious development plans,” Mr Bin Sulayem said.

“It will create new jobs, attract new businesses and investment along the corridor, as well as diversify and strengthen the country’s access to international trade by having a direct, seamless and efficient link between Ethiopia and Berbera Port.”

Global trade is set to improve after a rebound in the second half of last year due to pent-up demand for consumer durables from advanced economies, the International Monetary Fund said last month.

Trade is forecast to expand 8.4 per cent this year and 6.5 per cent next year after shrinking 8.5 per cent in 2020, according to the Washington-based lender's estimates.

DP World's agreement with the Ethiopian government proposes that the two entities establish a joint venture logistics company to carry out logistics operations from origin to destination. DP World will offer export services from origin in Ethiopia to Berbera Port. It will also provide import services from the port of loading to the delivery of shipments, the statement said.

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Ethiopia’s transport ministry will review and resolve regulatory obstacles on the Ethiopian side of the Berbera Corridor to facilitate smooth operations for logistics companies, the statement said.

“Ethiopia aims to diversify its port access facilities and services to improve its trade corridor access routes; utilising the Berbera corridor will have a potential to make Ethiopia a front-runner in logistics operations, boosting the competitive advantage of delivering our products to the world market,” Ms Moges said.

Ethiopia will also implement state-of-the-art IT infrastructure and technology along the corridor to ensure the secure transfer of cargo, DP World said.

The ports operator committed to investing up to $442 million to develop and expand Berbera Port, with the first phase nearly completed. Further work is under way on the expansion of the quay to 1,000 metres, which will increase capacity to 2 million TEUs (twenty foot-equivalent units), operated by 10 quay cranes.

The road that will connect Berbera Port to Wajaale on Ethiopia’s border, funded by the Abu Dhabi Fund for Development and the UK’s Department for International Development, is expected to be completed by the end of 2021, the statement added.

Updated: May 6, 2021 06:23 PM
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[Nomand]

old man Geele must be sweating. it seems UAE wants to punish him badly.

i also bet they got the go ahead from the Somali government. even during hassan sheikhs term UAE use to discreetly go through him.

[LeJusticier]

old man Geele must be sweating. it seems UAE wants to punish him badly.

i also bet they got the go ahead from the Somali government. even during hassan sheikhs term UAE use to discreetly go through him.

It never happened. Somalia haday oxygen noo hayso wayba naga xidhi lahayd.

[Nomand]

old man Geele must be sweating. it seems UAE wants to punish him badly.

i also bet they got the go ahead from the Somali government. even during hassan sheikhs term UAE use to discreetly go through him.

It never happened. Somalia haday oxygen noo hayso wayba naga xidhi lahayd.

Ethiopia and Somalia, since Abiy came to power have had a good relationship build on mutual respect of each other territorial integrity, specially in a time where Ethiopia is facing a huge backlash from Egypt and Sudan regarding the dam. The last thing Ethiopia would want is their Neighbour somalia siding with Egypt.

Ethiopia without the consent from Farmaajo would not be able to sign this. This is Farmaajo sending his regards to Geele.

[BigBreak]

So called Somalia had no involvement in this project whatsoever. Countries are realising that they can directly deal with SL without recognizing us officially or needing the Wanlaweyn stamp of approval

[LeJusticier]

old man Geele must be sweating. it seems UAE wants to punish him badly.

i also bet they got the go ahead from the Somali government. even during hassan sheikhs term UAE use to discreetly go through him.

It never happened. Somalia haday oxygen noo hayso wayba naga xidhi lahayd.

Ethiopia and Somalia, since Abiy came to power have had a good relationship build on mutual respect of each other territorial integrity, specially in a time where Ethiopia is facing a huge backlash from Egypt and Sudan regarding the dam. The last thing Ethiopia would want is their Neighbour somalia siding with Egypt.

Ethiopia without the consent from Farmaajo would not be able to sign this. This is Farmaajo sending his regards to Geele.

are you retarded? How many complaint brought by your weak government against DPW and Emirate? The current weak government have filled so many failed complaint against Emirate and Somaliland.

[Nomand]

you don't get it, no one is talking about somaliland or DP world, but rather Ethiopia who would not sign anything if not given direct permission from villa somalia.

this is a deal between Ethiopia and DP world using berbera, although when villa somalia questioned DP world regarding Berbera DP world said they got permission when hassan sheikh was president and where using that.

[LeJusticier]

So called Somalia had no involvement in this project whatsoever. Countries are realising that they can directly deal with SL without recognizing us officially or needing the Wanlaweyn stamp of approval

Mohamed Abdullahi and his MPs made so much noise & threats against Somaliland-DP World agreement to turn Berbera port into modern port in March 2018.

[mukke]

you don't get it, no one is talking about somaliland or DP world, but rather Ethiopia who would not sign anything if not given direct permission from villa somalia.

this is a deal between Ethiopia and DP world using berbera, although when villa somalia questioned DP world regarding Berbera DP world said they got permission when hassan sheikh was president and where using that.

What the hell are you onabout!?
Everybody know that the paper government in Xamar fought tooth and nail to make this deal fail.

[paperino]

old man Geele must be sweating. it seems UAE wants to punish him badly.

The Berbera port, if it manages to launch & succeed, won't be a threat to Djibouti for at least a decade. Just launching it would take about a decade. Competing against Djibouti would take another decade. Now that Ethiopia & Eritrea are on good terms, Ethiopia has access to Eritrean ports. On the diplomatic front, China & other powerful countries are against SL. The construction of the port/road aren't even finished (up to a decade away), so I don't see what this report is about.

[mukke]

old man Geele must be sweating. it seems UAE wants to punish him badly.

The Berbera port, if it manages to launch & succeed, won't be a threat to Djibouti for at least a decade. Just launching it would take about a decade. Competing against Djibouti would take another decade. Now that Ethiopia & Eritrea are on good terms, Ethiopia has access to Eritrean ports. On the diplomatic front, China & other powerful countries are against SL. The construction of the port/road aren't even finished (up to a decade away), so I don't see what this report is about.

China don't care about the paper goverment in Xamar, and when their ambassador in Xamar came to Hargeysa, Musse Bixi told them that we are willing to have relation with anybody who will establish relation with with us including the chinese - soon they will also deal directly with Somaliland and open a tradeoffice.

[mahoka]

you don't get it, no one is talking about somaliland or DP world, but rather Ethiopia who would not sign anything if not given direct permission from villa somalia.

this is a deal between Ethiopia and DP world using berbera, although when villa somalia questioned DP world regarding Berbera DP world said they got permission when hassan sheikh was president and where using that.

This is the problem with you people, you are so desperate to save face all the time you are willing to look stupid to do it. Somalia has complained about this agreement between the uae and SL, you complained to AU, UN and Arab league and your complaints were rejected. Now since this project is moving at full steam you want to save face and say you allowed it lol. Have some shame sxb, support your tribal leader without looking like a desperate fool.

[mahoka]

old man Geele must be sweating. it seems UAE wants to punish him badly.

The Berbera port, if it manages to launch & succeed, won't be a threat to Djibouti for at least a decade. Just launching it would take about a decade. Competing against Djibouti would take another decade. Now that Ethiopia & Eritrea are on good terms, Ethiopia has access to Eritrean ports. On the diplomatic front, China & other powerful countries are against SL. The construction of the port/road aren't even finished (up to a decade away), so I don't see what this report is about.

You are one bitter darod lol, may Allah cure your people from their cuqdad and inferiority complex