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DP World inks deal with Puntland to upgrade Bosaso Port

Storyline:Business, National News

GOOBJOOG NEWS|DUBAI: UAE ports operator DP World has entered into a new agreement with Puntland state to upgrade the port of Bosaso as the Emirati operator extends its reach in the management and operation of ports in Somalia.

A statement from DP World noted that the two sides signed the agreement which will see the port be upgraded within a period of 12 months starting in early 2023.

According to the agreement, the upgrade will involve the development of a 150-metre quay, as well as repairs to the current 215-metre quay. Other infrastructure will include the development of a new 3000 square metre container yard, and a 4000 square metre container stripping yard. The gate area to the port will also be upgraded to improve access control.

Once complete, the port will be able to handle container vessels and attract more direct calls from feeder ships from Dubai and other regional hubs. It will also become an important hub for dhow transport serving the Somali coast.

Puntland Ports and Maritime Minister Ahmed Salah said the agreement will create more opportunities for trade and transport in the region. “The expansion and upgrade of the Port of Bosaso is key to Puntland’s economic growth, which will benefit not just the people of the state, but also Somalia and the Horn of Africa. It will ensure the region is further integrated into the global trade ecosystem, as a bigger, more efficient port with the ability to receive container vessels, will facilitate increased trade,” said Salah.

P&O Ports, a subsidiary of DP World won a $336 million concession to develop and expand and manage the port of Bosaso in 2017. The concession will run for 30 years similar to DP World’s concession at Berbera port, Somaliland.