Landlocked Ethiopia has signed an agreement with the Somaliland Port Authority for the acquisition of 19% equity shares in the Port of Berbera in Somaliland.
DP World and Somaliland will hold the remaining 51% and 30% equity shares in the port respectively.
In addition to plans to construct an additional berth at the port, the government of Ethiopia will also invest in infrastructure to develop the Berbera Corridor as a trade gateway for the landlocked country.
DP World won a 30-year concession for the management and development of a multipurpose port project at Berbera in 2016. The company also pledged to invest $442m to develop Berbera, strategically located on the Gulf of Aden coast near the entrance to the Red Sea.
“Having the government of Ethiopia as a partner will enable DP World to support the government in achieving its impressive development plans. This development and the strengthening of our partnership demonstrates our commitment to the people of Somaliland and Ethiopia and we look forward to working together,” said Sultan Ahmed Bin Sulayem, chairman and CEO of DP World Group.
DP World has been embroiled in a nasty spat 200 km away from Berbera. The terminal operator has recently commenced arbitration proceedings in London after the government of Djibouti scrapped its concession at Doraleh Container Terminal.