ADVERTISEMENT

Government buys stake in Dubai-managed Somaliland port

Dubai-based DP World last week accused Djibouti of illegally seizing a port that is the main transit route to landlocked Ethiopia, the second most populous African nation.

More than 90 percent of Ethiopia's trade passes through Djibouti, located on the Bab al-Mandab strait, the key shipping lane to Europe from the Gulf and Asia beyond.

Under the agreement signed Thursday in Dubai, Ethiopia will own 19 percent of Somaliland Berbera port, according to a statement released by DP World, which will hold a majority 51-percent stake.

Representatives from Somaliland were in Dubai for the signing of the deal, which will leave their self-declared state with a 30 percent stake in Berbera port.

ADVERTISEMENT

Somaliland is not recognised by the international community despite 25 years of de facto independence from the rest of war-torn Somalia.

Ethiopia will invest in developing infrastructure at the Berbera corridor as a trade gateway for the inland country, the statement said.

DP World has also pledged to invest $442 million (360 million euros) to develop Berbera, strategically located on the Gulf of Aden coast near the entrance to the Red Sea.

The group, one of the world's largest port operators, won a 30-year concession for the management and development of a multi-purpose port project at Berbera in 2016.

Before Thursday's agreement, DP World owned 65 percent of the project and Somaliland held the remaining 35 percent.

ADVERTISEMENT

DP World last week announced it planned to seek international arbitration against Djibouti, after the tiny state terminated its 50-year concession at the Doraleh container terminal.

The Dubai government has also publicly criticised the decision by Djibouti, which is home to military bases of the United States, France, Italy, Spain, Saudi Arabia, Japan and China.

The Chinese base is immediately adjacent to the Doraleh terminal.

Doraleh is the terminus for a Chinese-built railway, which opened in 2016, linking Djibouti with the Ethiopian capital Addis Ababa.

DP World, which operates 78 marine and inland terminals in 40 countries, is also focused heavily on concession deals for ports in war-torn Yemen and across the Horn of Africa.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Sanwo-Olu opens 'Sunday market' on Good Friday for Easter shopping

Sanwo-Olu opens 'Sunday market' on Good Friday for Easter shopping

Wike thanks Tinubu for the opportunity to serve

Wike thanks Tinubu for the opportunity to serve

Barrister Bida pens special birthday prayer for President Tinubu, Nigerians

Barrister Bida pens special birthday prayer for President Tinubu, Nigerians

Tinubu’s aide distributes food items to 1,750 persons in FCT, Kwara

Tinubu’s aide distributes food items to 1,750 persons in FCT, Kwara

Court grants senator accused of forging NYSC certificate ₦50m bail

Court grants senator accused of forging NYSC certificate ₦50m bail

BREAKING: Delta monarch declared wanted by military surrenders to police

BREAKING: Delta monarch declared wanted by military surrenders to police

Renowned Canada-based Nigerian playwright, Oguntokun is dead

Renowned Canada-based Nigerian playwright, Oguntokun is dead

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT