P&O Ports has been awarded a 30-year, $336 million concession for the management and development of a port project in Somalia, the company said in a statement on Thursday.

The approximate investment for the modern multi-purpose facility at Bosasso in Puntland, Somalia, will be $336 million divided into two phases: $136 million for Phase 1 and $200 million for Phase 2.

The agreement was signed at a ceremony in Dubai by the President of Puntland, Abdiweli Mohammaad Ali and the Chairman of Ports, Customs & Freezone Corporation (PCFC), Sultan Ahmad Bin Sulayem, in the presence of senior Government officials and representatives of PCFC.

Work on the project will involve building a 450m quay and a 5 hectare back up area, dredging to a depth of 12m. There will also be major investment in an IT and Terminal Operating System (TOS), mobile harbour cranes and container handling equipment.

In a statement, the President of Puntland said: “This investment is a huge undertaking in Puntland and will greatly contribute to the infrastructure development in Somalia, particularly the Puntland State of Somalia. 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.”