DP World will develop the terminal at Somaliland’s most important commercial port and will expand as demand grows.
DP World, Dubai’s international trade and logistics operation, has announced plans to develop an edible oil terminal in Berbera Port, the main commercial port of Somaliland. The terminal will have an initial storage capacity of 18,000 tons and will be expanded as demand grows.
DP World and Berbera
The terminal is part of DP World’s ongoing attempts to reduce supply chain costs and a long term lease has been agreed for the facility. The terminal is the latest addition to Berbera’s growing trade infrastructure. The Berbera Economic Zone (BEZ) was recently opened just 15km from the port and sits on the Berbera to Wajaale road that connects to Addis Ababa in Ethiopia.
The Somaliland free zone is based on the model operated by Jebel Ali Free Zone in Dubai. There will be ‘synergies’ between the two zones, where companies in Dubai can register for Berbera through the JAFZA one-stop shop, while companies in Berbera can access JAFZA’s incubation center facilities, according to DP World.
Bulk imports of edible oil
The storage space of 18,000 tons can be expanded as demand for the oil increases, “It will be able to service vessels with a draught of up to 16 meters, allowing Berbera Port to handle bulk imports of edible oil for the first time,” DP World said in a statement. “The ability to import oil in bulk and package it locally will make edible oil more affordable for people in the region and create jobs locally.”
“As part of the Berbera port and economic zone ecosystem, this facility is the type of integrated port infrastructure that attracts international investors such as EGI looking to get closer to their customers,” said Suhail Albanna, CEO and Managing Director of DP World Middle East and Africa.
Local investments
The initial phase of the terminal is fully leased on a long-term basis to Mzahim Investment, a subsidiary of Essa Al Ghurair Investments (EGI). Mzahim Investment will develop a local packaging plant in Berbera to supply existing customers in Somaliland and the wider Horn of Africa, which could employ up to 100 people while developing the terminal.
Toward the end of last year, DP World announced plans to develop Somalia’s Bosaso Port as part of its goal of creating widespread trade infrastructure throughout Africa.