Major W For Somaliland! Berbera Port To Be Among The World Most Used Ports In The Coming Decades!


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@Yami @Almis
 
The Big Take

A $2 Trillion Reckoning Looms as Ports Become Pawns in Geopolitics​

The gateways to global trade face costly conversions to retool in new era of rivalry, automation and green energy
By Bloomberg News
August 20, 2024, 5:00 PM UTC

For centuries, control of the world’s biggest shipping centers helped expand empires, spark and settle wars, ease poverty and build middle classes while giving international companies access to cheap workers and cash-flush consumers in distant markets.

Along the way, maritime ports evolved from trading posts and naval bases into economies within economies that supercharged globalization, becoming vital junctions for energy flows, hubs for infrastructure like rail lines and power stations, and clusters for industrial production, warehousing and distribution.

Now, both old and new gateways for seaborne commerce⁠— responsible for handling 80% of the world’s $25 trillion in annual merchandise trade⁠—are economic fortresses in the great-power struggles of a multipolar world.

Meantime, they’re having to undergo costly and painstaking conversions to digital technologies, automation and green energy with a price tag estimated at €200 billion ($216 billion) a year in new investment, for a total of €2 trillion over the next decade.

“It’s now much clearer that ports are geopolitical assets and that emphasis hasn’t always been there,” said Peter de Langen, the owner and principal consultant of Ports & Logistics Advisory, based in Malaga, Spain.

Somaliland Becomes a Crucial Chess Piece

Nestled on the Gulf of Aden, port officials working for a multinational logistics company from the United Arab Emirates load ships with camels and goats destined for Saudi Arabia. They’re just a couple of hundred miles south of bases occupied by Iran-backed Houthi militants in Yemen.

The $300 million investment by DP World on the coastline of Somaliland, a breakaway region of Somalia, boasts a functioning military base and airstrip for planes conducting covert missions.

“It’s a very strategic place and the UAE can monitor everything that is happening in the whole region and the Gulf of Aden,” says Bashir Goth, the head of Somaliland’s mission to the US.

China Poured Money Into African Ports​

The UAE isn’t alone in seeking to boost its influence in this chokepoint for roughly 12% of global trade flows. Russia, Turkey, China, Iran and a handful of European states have all sought access to the East African coastline with various degrees of success in recent years.

Officials from the US Department of Defense conducted nine separate missions to Berbera—a sleepy town positioned strategically below the Red Sea—between 2020 and 2022 as it scouted the remote outpost for a way to distance itself from China’s presence a few hundred miles to the north in Djibouti, where the US operates an air base.

There, China has asked the Djiboutian government not to allow American planes to fly too low over its naval base, according to regional diplomats. The UK, Turkey and Taiwan⁠—friendly to Somaliland⁠—have also sent officials to the region.

“Berbera is becoming more strategic in light of new threats to global maritime trade in the Red Sea and Gulf of Aden,” said Matt Bryden, director of Sahan Research, a think tank covering the Horn of Africa. Its commercial potential as a corridor for international trade with land-locked Ethiopia only adds to its importance.

This year’s Container Port Performance Index from the World Bank ranked Berbera in 106th place among 405 ports globally, eclipsing its competitors in Djibouti, Egypt and Somalia.

But Somaliland’s stability is now at stake following an offer from Ethiopia to grant it formal recognition in exchange for port access and a naval base. The offer has irked Somalia, which claims sovereignty over the breakaway state. Somaliland declared independence from Somalia in 1991, but has failed in its quest to gain global recognition.

“The recognition of Somaliland would upend regional geopolitics and is strenuously opposed by Mogadishu and its allies,” Bryden said. “But an independent Somaliland may well offer better prospects for security in the Gulf of Aden than one harnessed to the faltering regime in Somalia.”

–Simon Marks in Nairobi

In times of peace and prosperity, ports operated out of public view unless something went wrong — pandemic supply-chain congestion, a fuel spill or longshoremen going on strike. Efficiencies driven by privatization were encouraged; environmental costs were often overlooked. All of that has now changed.

“A tiny little ragtag band of insurgents⁠—the Houthis⁠—are slugging it out with the US Navy for practically a year,” underscoring the vulnerability of the world’s sea lanes, said Isaac Kardon, senior fellow for Chinese studies at the Washington-based Carnegie Endowment for International Peace. “Protection and security are the watchword now.”
 
Not surprised. Berbera port looks very developed on google earth compared to other Somali ports (Mogadishu, Kismaayo and Bosaaso). Credit has to be given when due. The fact it sits on the red sea directly across from Aden gives it another geopolitical advantage boosting economics activity 👏
 
you know what is disgusting that there’s is only four or five ports in greater somalia, little israel has more ports than us, shame
 
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