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DP World has won a 30-year concession with an automatic 10-year extension for the management and development of a multi-purpose port project at Berbera, Republic of Somaliland. 

DP World will set up a joint venture with 65% control together with the government of Somaliland to manage and invest in the Port of Berbera.

The investment of up to US$442 million will consist of two phases, the first being the building of a 400 metre quay and 250,000 square metre yard extension as well as the development of a free zone to create a new regional trading hub.

Construction of the quay extension is expected to start 12 months after the satisfaction of the terms and conditions of the agreement and will take 24 months to complete.

The project will enable the port to handle up to 200,000 containers, allowing the country to take full advantage of its position between the Suez Canal and the Indian Ocean.

DP World Group Chairman & CEO Sultan Ahmed bin Sulayem, said: 

"This is part of our vision to act as an enabler of trade and to facilitate growth by helping African countries develop their infrastructure that connects them to global markets.

"These are exciting times for our industry and for Africa, and we're grateful for the opportunity to be an integral part of Somaliland's development. Investment in this natural deep-water port and free zone will act as a catalyst for the growth of the country and the region's economy.

"I'd like to thank the Government and the People of Somaliland for having the vision to take the necessary steps to allow us to invest in the Port of Berbera. I would also like to thank the Mayor of Berbera and the Governor of Sahil for welcoming the DP World team and making them feel at home."

President of Somaliland Ahmed Mohamed Mohamoud Silanyo, said: 

"This DP World investment in the Port of Berbera will strengthen the relationship between the Republic of Somaliland and the UAE which existed for many centuries in the past. Additionally, it will bring back and highlight the commercial position and importance of the Port of Berbera as a Red Sea gateway for the Middle East and Africa."

DP World Berbera compliments the company's investment in Djibouti and will also serve land locked countries in the Horn of Africa. In 2000, DP World and the Djibouti Government established a joint venture, with the signing of a 20 year concession to operate the Port of Djibouti.

DP World also operates a terminal at Jeddah Islamic Port (Saudi Arabia), a crucial link in the world’s busy east-west trade routes through the Red Sea. Jeddah Islamic Port is the main import destination for Saudi Arabia, handling 59% of its imports by sea and serving its main commercial centers.