DP World signs $422m joint venture with Somaliland (Gulf News)

[Hemaal]

Dubai: DP World, the port operator with terminals from Brazil to China, has signed an agreement with the government of Somaliland to co-invest $442 million (Dh1.62 billion) in the Port of Berbera.

The two parties have signed a term-sheet agreement to form a joint venture company that will “invest and manage” and transform the port into a “regional and logistic hub,” according to DP World statement sent to Gulf News on Wednesday.

It is understood the agreement was signed during a recent visit to DP World’s offices in Dubai by Somaliland officials.

Somaliland’s President Ahmad Mohammad Mohamoud was reportedly in the UAE last week. Somaliland is an autonomous and impoverished region in the Horn of Africa.


The agreement is non binding but sets the basic terms for the investment that includes investing $442 million in the port “over time.”

The investment is dependent on the port’s performance, the statement said, and will also include the setting up of a free zone.

The development of the Port of Berbera “will provide an additional gateway for Ethiopia that is needed for its growth and serve other land-locked countries along the east coast of Africa,” DP World said.

In March 2015, Dubai-owned P&O Ports said it had entered into “preliminary discussions” with the government of Somaliland to develop ports in the region.

P&O Ports is a sister company of DP World but does not share the same ownership structure.

DP World is owned by Dubai investment company Dubai World while P&O Ports is owned by state entity Ports, Customs and Free Zone Corporation (PCFC).

Sultan Ahmad Bin Sulayem is the chairman of DP World and PCFC.

Somaliland is a breakaway region of Somalia that has functioned as an independent state for twenty years without international recognition.

http://m.gulfnews.com/business/sect...-442m-joint-venture-with-somaliland-1.1825624

 

[waraabe]

Let's hope things go well

 

[Jeesto]

We will not profit from the port unless the government keeps an eye of every single thing that's imported and exported each year and have the file records of the ports activities so that we know how many they make in ordet to get back what is ours.

 

[Canuck]

We will not profit from the port unless the government keeps an eye of every single thing that's imported and exported each year and have the file records of the ports activities so that we know how many they make in ordet to get back what is ours.

And priority for hiring is for Somalis only.

 

[Inactive]

The agreement is non binding but sets the basic terms for the investment that includes investing $442 million in the port “over time.”

The investment is dependent on the port’s performance, the statement said, and will also include the setting up of a free zone.

What does "over time" mean?

What do they mean investment is dependent on the port's performance? What are their expectations of the port's performance? So they won't expand and modernize the port until they see "performance"? What does " performance" look like?

This is robbery.

There will be no investment made to the port. They are liars.

 

[Inactive]

Lol @ non binding agreement. So the Arabs dont have to follow anything they've agreed to.

This agreement should be torn up

 

[waraabe]

What does "over time" mean?

What do they mean investment is dependent on the port's performance? What are their expectations of the port's performance? So they won't expand and modernize the port until they see "performance"?

This is robbery.

There will be no investment made to the port. They are liars.

It means if it is viable option to invest then they will. I don't think it is ridiculous.

It is a statement, it will attract foreign investment

 

[Inactive]

It means if it is viable option to invest then they will. I don't think it is ridiculous.

It is a statement, it will attract foreign investment

What kind of agreement is this? They are supposed to invest in it. So they will just come in and steal Berbera port revenue for 3 decades?

The Arabs have robbed the skinny blind. They do this because they don't respect Somalis.

This is disgusting. 30 years of managing it and they don't even promise to invest in it until they see "performance". What does performance mean?

I ask the tough questions because the Somalis have been hypnotized

 

[Inactive]

They will bring their Indian slave workers to Berbera port. They want overworked and underpaid obedient people. They can pay the overworked Indian the same or less than a Somali.

 

[Suxuufi]

What kind of agreement is this? They are supposed to invest in it. So they will just come in and steal Berbera port revenue for 3 decades?

The Arabs have robbed the skinny blind. They do this because they don't respect Somalis.

This is disgusting. 30 years of managing it and they don't even promise to invest in it until they see "performance". What does performance mean?

I ask the tough questions because the Somalis have been hypnotized

Sxb don't get your panties in a knot. Terms like non binding are used because there's no legalities or insurance companies to reimburse DP world if things go south. This is an unregcognized country. The fact that they gave 15 mill as a signing gesture shows their seriousness. The contract being non binding actually works in favor for the locals because if they're not satisfied they can kick DP world out over night.

 

[Inactive]

DP World and SL are both co investors. Where will SL get the money to invest in the port? There will be no expansion on this port with this dirty deal.

Of course the agreement works in best interest of the locals but they won't use it to their benefit.

I thought DP World was the only one ponying up the dough. They said investment only occurs if there is "performance". Even if there is "performance", whatever that means, what if SL has no money to bring up their share for expansion?

DP World are just there to collect their percentage. I don't think it's 45%. I think it's higher. They will not invest a penny. They worded it so well.

SL govt won't be able to pay its soldiers or government workers once DP World comes in.

 

[Suxuufi]

DP World and SL are both co investors. Where will SL get the money to invest in the port? There will be no expansion on this port with this dirty deal.

Of course the agreement works in best interest of the locals but they won't use it to their benefit.

I thought DP World was the only one ponying up the dough. They said investment only occurs if there is "performance". Even if there is "performance", whatever that means, what if SL has no money to bring up their share for expansion?

DP World are just there to collect their percentage. I don't think it's 45%. I think it's higher. They will not invest a penny. They worded it so well.

SL govt won't be able to pay its soldiers or government workers once DP World comes in.

SL's investment is the corridor from berbera to ethiopia. Ethiopia and UAE will get grants on behalf of SL to build this corridor since SL is not recognized. It's simple, The corridor is the main reason why DP is investing. 30% of Ethiopia goods will come through berbera. This will generate major funds for DP as an investor. Whether or not the volume for imports is there is the actual underlying factor and the major " If" in this contract.

This is business. Somalis want ppl to give them shit for free, that's not how it works. Considering the position SL is in..if they tread carefully with this port deal, it will open up the country to major investment in the future. Not to mention strangling ethiopia in the long run with full control of the Berbera port in 30 years time( if not less)

 

[Inactive]

SL's investment is the corridor from berbera to ethiopia. Ethiopia and UAE will get grants on behalf of SL to build this corridor since SL is not recognized. It's simple, The corridor is the main reason why DP is investing. 30% of Ethiopia goods will come through berbera. This will generate major funds for DP as an investor. Whether or not the volume for imports is there is the actual underlying factor and the major " If" in this contract.

This is business. Somalis want ppl to give them shit for free, that's not how it works. Considering the position SL is in..if they tread carefully with this port deal, it will open up the country to major investment in the future. Not to mention strangling ethiopia in the long run with full control of the Berbera port in 30 years time.

Business is business.

But taking over 45% of revenue without doing any investment before "performance" is robbery. 45%+ for free. For nothing.

Ethiopia will not come if there is no expansion. The only thing that changes is that DP World will be managing it.

There will be no future investments. Foreigners will see the skinnys bending over and will be lining up.

You have to invest first to see greater "performance". The fact they made SL a co-investors speaks volumes. They know SL doesn't have the cash to invest

 

[Suxuufi]

Business is business.

But taking over 45% of revenue without doing any investment before "performance" is robbery. 45%+ for free. For nothing.

Ethiopia will not come if there is no expansion. The only thing that changes is that DP World will be managing it.

There will be no future investments for anything. Foreigners will see the skinnys bending over and will be lining up.

You have to invest first to see greater "performance". The fact they made SL a co-investors speaks volumes. They know SL doesn't have the cash to invest

Like I said SL being a co investor is regarding the corridor . You think landers are just going to watch them hold the port without any investment., 15 million is their initial investment,5 mill for SL treasury and 10 mill for some equipment. Your skeptical for no reason...I'm sure they worked out a time frame and periodic stages where the investment will take place over time.

 

[Inactive]

Like I said SL being a co investor is regarding the corridor . You think landers are just going to watch them hold the port without any investment., 15 million is their initial investment,5 mill for SL treasury and 10 mill for some equipment. Your skeptical for no reason...I'm sure they worked out a time frame and periodic stages where the investment will take place over time.

They worked out nothing or they would have released it to the media.

Why should SL invest? What benefit is there to have someone take 45%+ and SL being a co investor for anything?

If they want to get returns, it's on DP World to put their stake in it. They have and will not do such a thing. They are revenue collectors that's it.

 

[Suxuufi]

They worked out nothing or they would have released it to the media.

Why should SL invest? What benefit is there to have someone take 45%+ and SL being a co investor for anything?

If they want to get returns, it's on DP World to put their stake in it. They have and will not do such a thing. They are revenue collectors that's it.

What are you talkin about...do you just speak without any knowledge??? There's a 40 minute documentary already out. Listen from 5 mins. The guy who runs the port says this will increase SL port revenues 10 or 20 fold and there's still more deals to be made and it's a whole process. Bro SL didn't rush, DP world and Ballore have been competing for this port for over 10 years. Ballore wanted a 30-50 year deal which is their international standard and that's one of the main reason SL declined them

 

[Inactive]

They said they won't invest without "performance". They need to define what "performance" means.

 

[Suxuufi]

They said they won't invest without "performance". They need to define what "performance" means.

According the man who controls the port, the minor contract was signed and the major one is yet to come. I'm guessing the bigger contract will give more details.

 

[Inactive]

Whatever the port manager says is irrelevant. What is relevant is what DP World promised. They promised nothing according to that article. They made vague conditions and they had the audacity to say SL must co-invest and investment from their side only occurs when they see "performance". They deliberately worded that deal so they don't invest diddly shit. DP World are thieves. They are not businessmen. This is daylight robbery. SL has no money to co-invest and they know it. DP World is getting their cut with $0 put up front.

Ther $400M+ investment, half of which SL is supposed to pony up, wont happen. This is all a big lie and I'm the only rational person to see this.

 

[Suxuufi]

Whatever the port manager says is irrelevant. What is relevant is what DP World promised. They promised nothing according to that article. They made vague conditions and they had the audacity to say SL must co-invest and investment from their side only occurs when they see "performance". They deliberately worded that deal so they don't invest diddly shit. DP World are thieves. They are not businessmen. This is daylight robbery. SL has no money to co-invest and they know it. DP World is getting their cut with $0 put up front.

Ther $400M+ investment, half of which SL is supposed to pony up, wont happen. This is all a big lie and I'm the only rational person to see this.

The link explains much of the contract agreements, Just watch the vid and shut up