- The United Arab
Emirate (UAE) based multinational port and terminal operator, DP World,
said that it has been closely following the privatization moves the
Government of Ethiopia is considering; and currently, the state owned
operator is finalizing a feasibility studies to launch a logistical
operations across East Africa where Ethiopia is one of the targeted
countries.
Suhail Al Banna, CEO and Managing Director of DP World for Middle
East and Africa, said that the feasibility study to establish a regional
logistics hub, centered on the Port of Berbera, will be finalized in
the coming three months.
It is to be recalled that back in October, while launching the
initial port expansion project and signing the construction contract
agreement worth USD 101 million in Hargesa; Sultan Ahmed bin Sulayem,
Chairman and CEO of DP World, told reporters that DP World is looking at
its options to develop a logistic facility in Ethiopia especially
pursuant to the recent decision taken by Ethiopia to privatize its
assets in the logistics sector.
The Emiratis, nonetheless, want to study the potentials of Dire Dawa
and the surrounding areas for a trade logistic infrastructure
development. The ongoing feasibility study across the Berbera corridor,
which is deemed to become a regional hub in the Horn of Africa, could
link the Red Sea to Europe and the Far-East. Suhail Al Banna said that
the study will also look at the potentials of the likes of Jigjiga city
in Somali Regional State of Ethiopia.
Earlier
this week, during an inaugural ceremony held at the Port of Berbera, DP
World has commissioned three Mobile Harbor Cranes (MHC) costing USD 12
million. President Musse Bihi Abdi and senior government officials of
Somaliland including Said Hassan Abdullahi, general manager of the
Berbera Port Authority, attended the commissioning at the port. Hassan
Abdullahi told Ethiopian media outlets on the occasion that previously,
depending on the wind, vessels were forced to spend three to four hours
of turnaround time before they could unload shipments and discharged
from the port. According to the general manager, due to the delay, the
Berbera port was able to handle 14,000 (twenty feet equivalent
units-TEU) containers a month. However, after the deployment of the
MHCs, it will reach to a point where it can handle more than 28,000 TEUs
per month.
Suhail Al Banna also said that the port operations is further
expected to boost cargo handling in a much efficient manner where the
multipurpose facility could handle more roll on–roll off (ro-ro),
general cargo and liquid cargo, depending on the needs and orders of
customers. So far, including MHCs, two reach stackers, 10 internal
transfer vehicles (ITVs) and five forklifts have also been installed
since the official hander-over of the management and port operations to
DP World was effective starting from 2017. In addition, DP World has
provided trainings for 2,700 Somaliland and other employees working at
the Berbera Port.
Back in 2016, DP Word acquired a 30-year concession with a 10-year
automatic extension of managerial and port operations contract in
Berbera. DP World has set up a joint venture agreement with Governments
of Somaliland and Ethiopia, where a 51, 30 and 19 percent shares are
controlled by each side, respectively.
The three sides have agreed that a total of USD 442 million will be
invested including the first phase project which has launched a 400
meter quay or berth and 250,000 square meter yard expansion. In addition
to that, DP World will also develop a free zone in an effort to create a
regional trading hub along with the free zone.
The government of Somaliland has started the construction of a road
project linking Brebera to Togochale, a border town that connects
Somaliland with the eastern part of Ethiopia. The linking road which
will require close to USD 90 million is expected to be partly financed
by the UAE. The Minister further stated that when further need is
required, Ethiopia will also be requested to help.
The major target of the Berbera Port development, according to Saad
Ali Shire, is the Eastern part of Ethiopia which includes a vast swath
of land extending from Somali Region to Dire Dawa.
By Birhanu Fikade/The reporter
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