A new oil storage terminal has been opened at the port city of Berbera to serve the Horn of Africa region.
Dubbed Dahabshiil Oil Storage Terminal (DOST), it was officially inaugurated by Somaliland President Muse Bihi who termed it as a symbol of progress and prosperity in the country that is seeking international recognition.
The President noted that the occasion marked a giant step in the growth of Berbera as a port and the Horn of Africa as a hub for both local and foreign investment.
“This is a facility that benefits anyone who wants to unload oil and gas from the National Port of Berbera,” Bihi said.
Additionally, Bihi laid the foundation for the forthcoming LPG facility.
He had earlier opened a new offshore terminal that will enable vessels up to 80,000mt to call Berbera, allowing larger vessels serving regional customers to deliver fuel products.
Built to the latest international standards for both liquids and gases, the DOST terminal has received certification for its firefighting, materials and offshore facilities from various international firms, attesting to its top-notch quality.
The terminal, whose development will be done in phases, is envisioned to include new large tanks, in addition to the current tanks, propelling the total storage capacity of DOST to 110,000 cubic meters or 110 million litres.
DOST’s investment extends to an LPG terminal with a capacity of 12,000 cubic meters.
The use of LPG will lead to a reduction of deforestation, hence combating climate change which has adversely affected the region causing drought and famine.
The inaugural phase is ready for operation with a provision for both petrol and diesel storage including a provision for aviation fuel storage, specifically Jet A1, a ground-breaking development for the port, which has not had an operational aviation fuel storage for the past 20 years.
Dahabshiil Group and its partners have invested over $100 million in the project.
The advanced operations of DOST Terminal include a modern fuel offshore terminal (CBM) with the capacity for both importing and exporting fuel products, catering to the landing of up to eight tankers per month, further underscoring the terminal’s operational capacity.
President Bihi lauded Dahabshiil Group for driving impactful projects in the region. He emphasized the significance of collaboration between the government and the business community, paving the way for economic development.
Somaliland’s minister for Trade and Tourism, Mohamud Hassan Saad acknowledged Dahabshiil Group’s role in the region’s economic development.
He highlighted that these infrastructure projects are built to serve the region including Ethiopia and the Horn of Africa.
This underscores the importance for Ethiopia to have a second pathway for the importation of fuel products due to the congestion in regional ports.
Dahabshiil Group chairman Mohamed Duale said the private sector in Somaliland plays a key role as a catalyst in the region’s development.
“The advancements in the port infrastructure and the establishment of new industries will open up the Horn of Africa,” he said.
Abdirashid Duale, the CEO of Dahabshiil Group, said the positive impact of the newly launched oil terminal will play as an important gateway for the Horn of Africa region.
“This investment in oil and gas infrastructure yields tangible benefits for the region, improving livelihoods and reducing living costs associated with energy expenses.
The combination of new infrastructure and job opportunities will contribute towards the region’s prosperity while fostering an environment conducive to business growth and lowered fuel costs,” said Abdirashid Duale.
He added that the strategic location, connecting the Berbera corridor and the Hargeisa bypass, bolsters the region’s market opportunities, extending into neighboring Ethiopia.
“DOST Terminal stands as a testament to innovation, cooperation, and the shared vision of Dahabshiil Group, government leaders, and the community,” said Duale.