In conjunction with Dubai Ports World (DP World), Somaliland has opened a new terminal at Berbera Port, seeking to be a major trade gateway for a landlocked Ethiopia. Ethiopia currently depends on Djibouti for 95% of its imports and exports.
The nation has also announced the second phase of expansion and groundbreaking for an economic zone.
Berbera Port’s new container terminal has an annual capacity of 500,000 TEUs, with its second phase expansion projected to increase its annual capacity up to 2 million TEUs from the current 150,000 TEUs.
The new container terminal has a deep draft of 17metres, a quay of 400metres and three ship-to-shore gantry cranes. Although it can handle the largest container vessels in operation today, it remains way below in annual throughput capacity compared to Mombasa. The Port of Mombasa has an annual capacity of over 1.4 million TEUs and close to 35 million tonnes, making it a leading facility in the region.
In addition to expanding the new container terminal, Somaliland is building a Berbera free trade zone and corridor and major road projects that intend to connect it mainly with Ethiopia.
According to Ethiopian officials, the road project due for completion later this year will not only serve as an alternative corridor for Ethiopia, but it will also provide efficient service as it will allow imports from the port of Somaliland to enter Ethiopia “directly, quickly and efficiently”.
The Berbera Corridor road upgrade project, funded by the Abu Dhabi Fund for Development (ADFD) and the UK’s Department for International Development (DFID), and the Hargeisa Bypass Road funded by UK Aid, is set for completion in Q4 2021 and Q3 2022, respectively.
The road will link to the existing modern highway on the Ethiopian side and position Berbera as a direct, fast, and efficient trade route for Ethiopian transit cargo.
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