Dubai’s DP World plans Ethiopia logistics facility

Dubai ports operator DP World has announced plans for a logistics facility in Ethiopia to facilitate the transport of goods to landlocked countries.

Group chairman and CEO Sultan bin Sulayem said the facility would enable the transport of goods to and from the port it is building at Berbera in the disputed region of Somaliland.

Ethiopia acquired a 19 per cent stake in the Berbera port, which will be competition to Ethiopia’s existing main trade route through Djibouti, in March.

Read: Ethiopia acquires 19% stake in DP World’s Somaliland port

DP World previously managed Djibouti Doraleh port concession before the government abruptly ended its contract. The company denied reports last month that it was considering an out of court settlement to end the dispute.

Read: Dubai’s DP World will not consider settlement with Djibouti over port

“We have signed a number of agreements with Ethiopia that will promote our friendly relationships with them,” Sulayem said at an open dialogue with business and trade groups in Dubai, according to UAE news agency WAM.

“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.”

DP World is currently implementing a master plan at Berbera to add new facilities including an additional berth and cranes, which are scheduled to arrive later this year.

It also announced plans in November to develop an economic free zone next to the port that will eventually cover 12.2sqkm.

Read: DP World to establish Berbera free zone

The UAE is separately building a highway connecting Berbera to the Ethiopian border as part of other commitments, according to Reuters.