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Berbera is poised to become a prominent Business and Logistics hub connecting Ethiopia to Somaliland City
Posted On 08 May 2021
By Abdul Rahman Bangura–
Photo Credit: African Arguments
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- May 06th, 2021, the Dubai-based ports operator DP World and Ethiopia’s Ministry of Transport ratified a consensus to improve the road tying Ethiopia to Berbera in Somaliland into a trade and logistics foyer.
DP World and its counterparts scheme to invest up to $1 billion over the next 10 years to expand supply chain infrastructure along the corridor, the company said in a statement. This will comprise dry ports, silos, warehouses, container yards, cool and cold chain depots, freight forwarding and clearing activities, the company asserted.
The pact was signed in Addis Ababa by Dagmawit Moges – Ethiopia’s Minister of Transport, and Sultan Bin Sulayem – DP World’s Chairman and Chief Executive.
“We believe that developing the Berbera corridor into one of the major trade and logistics corridors will unlock huge economic benefits for Ethiopia and support its ambitious development plans,” Bin Sulayem let out.
“It will create new jobs, attract new businesses and investment along the corridor, as well as diversify and strengthen the country’s access to international trade by having a direct, seamless and efficient link between Ethiopia and Berbera Port.”
Multinational trade is set to increase after a rebound in the second half of 2020 due to pent-up demand for consumer durables from advanced economies, the International Monetary Fund announced on April 2021. Trade is predict to broaden 8.4% this year and 6.5% next year after dwindling 8.5% in 2020, according to the Washington-based lender’s conclusions.
DP World’s consensus with Ethiopia predicted recommends that the two forces ascertain a mutual investment logistics corporation to carry out logistics operations from origin to destination. DP World will offer export services from the origin in Ethiopia to Berbera Port. It will also provide import services from the port of loading to the
delivery of shipments, the statement announced.
Ethiopia’s transport ministry will examine and decide regulatory barriers on the Ethiopian side of the Berbera Corridor to promote smooth operations for logistics companies, the statement said.
“Ethiopia aims to diversify its port access facilities and services to improve its trade corridor access routes; utilizing the Berbera corridor will have a potential to make Ethiopia a front-runner in logistics operations, boosting the competitive advantage of delivering our products to the world market,” Moges stated. Ethiopia will also implement
state-of-the-art IT infrastructure and technology along the corridor to ensure the secure transfer of cargo, DP World said.
The port operator committed to investing up to $442 million to develop and expand Berbera Port, with the first phase nearly completed. Further work is underway on the expansion of the quay to 1,000 meters, which will increase capacity to 2 million TEUs (twenty-foot equivalent units), operated by 10 quay cranes.
The road that will connect Berbera Port to Wajaale in Ethiopiaa’s border, funded by the Abu Dhabi Fund for Development and the UK’s Department for International Development, is expected to be completed by the end of 2021, the statement added.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
Email: Info@newafricabusinessnews.com
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