The State Government of Puntland in Somalia and DP World have agreed to upgrade and extend the Port of Bosaso in northeastern Somalia as part of their ongoing efforts to increase their influence in the country. It becomes the second port in the Somali peninsula to be run by DP World, following Berbera.
The agreement calls for a 12-month project that will involve building a 500-foot-long pier and fixing the existing 700-foot quay. The construction of a new 33,000-square-foot container yard and a 43,000-square-foot container stripping yard are two further infrastructure projects. To enhance accessibility, the gate area to the port will also be increased. Early in 2023 is when the project is anticipated to begin.
The Port of Bosaso will be able to accommodate cargo ships once it is finished. It will also be able to draw direct calls from feeder ships departing from Dubai and other regional ports. Additionally, the government of Puntland hopes to develop Bosaso into a significant dhow transportation center along the Somali coast.
“The Port of Bosaso’s extension and modernization are essential to Puntland’s economic development, which would benefit not only the state’s citizens but also Somalia and the Horn of Africa. Because a larger, more effective port that can accept container boats will enable greater trade, it will ensure that the region is further linked into the global trade ecosystem, according to Ahmed Yaasiin Saalah, Puntland’s Minister of Ports and Maritime transport.
Investment confidence in Somalia’s maritime sector has increased with the removal of the Indian Ocean High Risk Area (HRA) scheduled to take effect in January 2023.
Since assuming control of Berbera in 2016, DP World has built a new container terminal, increased the quay’s length by more than 1,300 feet, and most recently introduced Berbera Economic Zone. Businesses and dealers are freed from taxes on re-exports in the free zone, and they are also permitted to use foreign workers.
These initiatives are a part of the region’s broader investment revival. In the recent past, local businesspeople in Garacad, Puntland’s northern Mudug area, invested approximately $180 million in the construction of a new seaport. The first ship docked at Garacad Port in October, signaling the port’s official opening for operations.
As a de facto pirate capital off the coast of Somalia in the early 2000s, Garacad made headlines throughout the world for all the wrong reasons. These recent events are viewed as a further illustration of Somalia’s tenacious efforts to shed its previous image as a nation of pirates.