DP World to manage Somaliland port of Berbera

[Racer]

Dubai’s DP World has agreed to manage the Somaliland port of Berbera in a landmark deal this month that opens a new point of access to the Red Sea and gives the global ports operator an alternative hub to Djibouti in the Horn of Africa.

Under the terms of the concession agreement, according to a person who has seen the document, Somaliland will grant the Dubai-based company the right to manage the Red Sea port of Berbera for 30 years.

DP World on Sunday said it agreed to the port management deal earlier this month in Dubai. Under the term sheet — a nonbinding agreement that serves as a precursor to a more formal deal — the company is to set up a joint venture to manage and invest in the port. DP World put a $US442m value on the project, but said it would be a phased investment and depended on port volumes.

The term sheet — which will see DP World pay $US5m a year plus 10 per cent on port revenue to Somaliland — is a breakthrough in developing access to the sea for landlocked Ethiopia, the region’s largest economy, which until now solely relies on the port of Djibouti for its exports.

DP World would control 65 per cent of the joint venture and five of seven board seats, with the rest going to Somaliland according to the term sheet, the person said.

A spokesman for the Somaliland government did not reply to a request for comment.

It is the biggest single investment agreement in breakaway Somaliland — and treats the northern Somali region as a de facto independent nation, a position Somalia rejects. The UN. doesn’t acknowledge Somaliland as independent, and it isn’t recognised by any other country in the world.

hiiraan.com/news4/2016/May/105663/dp_world_to_manage_somaliland_port_of_berbera.aspx

 

[Racer]

Day light robbery caadi 5 mill per year you know

 

[Freebandz]

Bu bu @waraabe told me barbera was making 140 million dollars a years and after the expansion they would be making a 1 billion dollars a year

 

[Racer]

Bu bu @waraabe told me barbera was making 140 million dollars a years and after the expansion they would be making a 1 billion dollars a year

​

 

[McD30]

 

[McD30]

Somaliland will grant the Dubai-based company the right to manage the Red Sea port of Berbera for 30 years.

DP World put a $US442m value on the project, but said it would be a phased investment and depended on port volumes.

The term sheet — which will see DP World pay $US5m a year plus 10 per cent on port revenue to Somaliland

 

[waraabe]

My port, my decision

You can make better deals for bosaso /Lascanod /Jigjiga Ports

 

[McD30]

My port, my decision

You can make better deals for bosaso /Lascanod /Jigjiga Ports

It's okay @waraabe, I'd be mad too. It's funny because it was so obvious.

 

[waraabe]

It's okay @waraabe, I'd be mad too. It's funny because it was so obvious.

I don't mind. I am cool with the deal

 

[Adam]

Ibn xaraan silanyo want to pucket some money before his term ends.

 

[Racer]

My port, my decision

You can make better deals for bosaso /Lascanod /Jigjiga Ports

5 mill per year

 

[Bernie Madoff]

@Racer

i thought you didnt care about qabils sxb?

 

[Racer]

I don't mind. I am cool with the deal

 

[somebody]

So was somaliland making more money before this deal was made?

 

[Racer]

@Racer

i thought you didnt care about qabils sxb?

What has this to do with qabill ???

 

[waraabe]

5 mill per year

Plus 10% of revenue, $442m investment, invitation for more foreign investment, thousands of jobs, development of berbera, forcing government to get off their asses and get stop relying on berbera alone for their revenue.

I agree with this plan

 

[Sixth]

From North - South wars to Port wars.
Niggas be roasting each others ports.

 

[Sixth]

South port niggas be like: YOUR PORT ISN'T RECOGNISED BY THE INTERNATIONAL COMMUNITY.

North port niggas be like: OUR PORT GOT INDEPENDENCE 190bc

#Appreciateallourports
#SupportThePorts

 

[Gilgamesh]

Plus 10% of revenue, $442m investment, invitation for more foreign investment, thousands of jobs, development of berbera, forcing government to get off their asses and get stop relying on berbera alone for their revenue.

I agree with this plan

You have to also remember the revenue the government makes currently is only off of domestic exports of livestock and negligible imports for Ethiopia, so when Ethiopia starts to allocate a larger share from Djibouti to our Port that increase in revenue is going to level out to what we currently make even with a 10% share and continue to grow as Ethiopia develops and exports/imports more goods. When the only naysayers are the usual suspects then you know you are doing something good.

 

[Suxuufi]

It doesn't seem that bad tbh

- Somaliland will tax everything coming in. From the 65% controlled by DP world to the 35% controlled by Somaliland. Right now barely anything is imported into the country on a large scale. Having 30% of Ethiopias imports coming through berbera will exponentially increase the profit off taxes alone, and that's without port revenue. And the corridor will open a new market to somali businessmen to a 80 mill population

- Somaliland will have its port built to international standards and will have a world class port replacing caden(yemen) roll in the region. This will increase exports in the horn which are non existant (aside from livestock)

- 10% on port revenue doesn't mean 10% of the 440mil investment . It means that Somaliland, aside from the taxes in which it will gain from the port , will get 10% of the revenue generated by operating fees, ship servicing fees, cargo fees, unloading and storage fees, equipment rental etc etc. That 10% would be small if DP world controlled the full port but SL will maintain full control and profit from 35% of the port while taking 10% off of DP worlds 65% or 5 out of 7 board seats.