Company Will Own 65% of Joint Venture With Somaliland Government
DUBAI—Dubai-based ports operator DP World on Monday said it has won a concession to manage and develop a port at Berbera in Somaliland, adding to a global portfolio of more than 75 terminals.
The Somaliland concession lasts for 30 years, with a 10-year automatic extension, DP World said in a statement. The company will own 65% of a joint venture with the government of Somaliland to manage and invest in the port, it said.
The Wall Street Journal reported the deal in May. In addition to the management terms, an investment of up to $442 million is planned to expand the port infrastructure. It will be phased depending on port volumes, DP World said.
For DP World, the deal gives it a new hub and outlet to the Red Sea near its existing port in Djibouti in the Horn of Africa.
The company last month posted a 50.2% rise in first-half profit as it added new capacity and margins improved.
DP World is among the world’s largest ports operators, managing marine and inland terminals across six continents. It has recently added new capacity in markets such as Turkey’s Yarimca, Stuttgart in Germany, Prince Rupert in Canada and at its flagship port at home in Jebel Ali.
Write to Asa Fitch at email@example.com
Source: Wall Street Journal