Berbera port is the principal international commerce gateway for Somaliland’s breakaway republic. The port city is situated on the Gulf of Aden, one of the world’s busiest water routes between the Indian Ocean with the Mediterranean.
Berbera port was only a few years ago a derelict runway, originally established by the British empire and then modernised by the Soviet Union and then the US. The port is Somaliland’s lifeline, as it imports the majority of its necessities, from food to construction materials, vehicles, and furniture. Its biggest export to the Arabian Peninsula is livestock.
This scenario altered dramatically once Dubai Ports World (DP World), a renowned global port operator and logistics behemoth based in the UAE, took over port administration in 2017. It extended the quay by 400 metres, built a new container terminal, created a free zone, and began managing the port’s operations.
The most recent crane types, which have been active since June 2022, are lined up alongside the dock. Every day, DP World staff practise operating the cranes. The port is expected to attract 500,000 TEU (unit of cargo capacity) per year, which is around one-third of the capacity of the neighbouring Doraleh port in Djibouti. This would allow Somaliland to compete with other ports in the region such as Djibouti, Mogadishu, and Mombasa for logistics hub status on the Gulf of Aden.
Cranes are critical for the quick cargo handling necessary in a modern port. Staff training, on the other hand, takes place in a port that has yet to become busy. Container ships have arrived fairly sporadically thus far.
We have been researching the emerging port infrastructure in the Horn of Africa. Ethiopia’s participation in the renovated Berbera port is just what it needs. Ethiopia has been landlocked since Eritrea’s independence in 1993, relying on the port of Djibouti for 95% of its trade.
In 2017, DP World, Ethiopia, and the government of Somaliland inked a concession agreement to develop and modernise the port of Berbera. The 30-year concession includes a commercial port, a free zone, a corridor connecting Berbera to Ethiopia’s frontiers, and a Berbera airport.
The concession allowed Somaliland’s government to keep 30% of the port’s shares, while Ethiopia kept 19% and DP World kept 51%. However, Somaliland stated in June 2022 that Ethiopia had failed to acquire its 19% stake in Berbera port. Ethiopia failed to meet the requirements.
Somalilanders, though, remain optimistic. The infrastructure project is extremely important to the country. It offers to support its ambitions for worldwide recognition, economic progress, and better living conditions for its population.