DUBAI: DP World has signed an agreement with Somaliland to develop a free zone at the Red Sea port of Berbera.
DP World says the development will be modelled on Jebel Ali Free Zone.
The agreement was signed on Monday by DP World Group Chairman and CEO Ahmad Bin Sulayem, and Somaliland’s Minister for Foreign Affairs and International Cooperation, Dr Saad Ali Shire.
DP World will develop the 12.2 square kilometre feezone in phases, with the first phase covering 4sq km. Each new phase will begin when the previous phase has reached 85 per cent occupancy.
DP World announced in September 2016 it would invest $442 million (Dh1.6 billion) in the Port of Berbera after winning a concession to operate the port for 30 years. It said at the time that there was scope for a free zone.
Following Monday’s signing, Bin Sulayem said in a statement: “We are excited by Somaliland’s development opportunities which has parallels with the start of our own growth in Dubai and the UAE. We look forward to finalising the details of the Berbera Free Zone with the next government of Somaliland and look forward to our continued partnership.”
He added: “Our vision is to make Berbera a trading and transportation hub for the Horn of Africa and we look forward to achieving this together.”
DP World said in a statement that container volumes at Berbera increased by 40 per cent between September 2016 and September 2017.
The company said it has begun implementing the Berbera master plan, which includes an additional 400-metre container terminal. It has also upgraded existing facilities by introducing new equipment, including two reach stackers, 10 internal transfer vehicles (ITVs) and five forklifts. The first cranes are scheduled to arrive next year.
