Dubai-owned ports and terminal operator, DP World, has agreed to manage the Somaliland port of Berbera for 30 years – in a deal that opens a new point of access to the Red Sea and gives the operator an alternative hub to Djibouti in the Horn of Africa.
DP World said in a statement that it had agreed to the port management deal earlier this month in Dubai. Under the term sheet—a non-binding 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 $442-million value on the project, but said it would be a phased investment and depended on port volumes.
