Ports operator’s facility would strengthen its position on the continent, says DP World Group Chairman and CEO Sultan Ahmed bin Sulayem
By Deena Kamel (The National)
DUBAI, U.A.E.– DP World is planning to set up a logistics facility in landlocked Ethiopia to transport goods from a port it is developing in neighboring Somaliland, in its latest foray into Africa where it has faced dual challenges.
The NASDAQ-listed company’s logistics complex in the east African country would transport goods to various landlocked states on the continent, said Sultan Ahmed bin Sulayem, chairman and CEO of DP World, according to UAE news agency Wam.
DP World could not be immediately reached when contacted for comment.
The company, one of the world’s top five largest port operators, signed an agreement with the Somaliland government in 2016 to invest $442 million (Dh1.62 billion) in the Port of Berbera on Africa’s east coast and manage it in a 30-year concession. In March, Ethiopia became a 19 per cent shareholder in the Port of Berbera, with DP World controlling 51 per cent stake in the project and Somaliland holding the remaining 30 per cent. However, Somalia, which doesn’t recognize Somaliland’s 1991 declaration of autonomy, dismissed the deal as “null and void”.
The dispute over plans to develop the port in Somaliland risks destabilizing the Horn of Africa region, the semi-autonomous territory’s foreign minister Saad Ali Shire said in March.
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DP World’s planned facility in Ethiopia would strengthen its position in Africa, Mr bin Sulayem said.
“Business groups in Dubai can always benefit from DP World’s presence in different countries including Rwanda and Egypt where re-exporting opportunities are abundant” he remarked during an open dialogue with trade and business groups in Dubai.
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