DP World has signed a memorandum of understanding (MoU) with the Ethiopian Ministry of Transport to develop a part of the road linking the country to a major international trade and logistics corridor.
In a statement, DP World said the MoU follows the decision by the two sides to explore the potential for developing end-to-end logistics infrastructure and services along the Ethiopian side of the linking Ethiopia to Berbera, Somalia.
DP World will offer services from origin in Ethiopia up to Berbera Port, while for imports, it will offer from the port of loading to the delivery of shipments in one of the dry ports in the hinterlands or the final destination of the consignees.
DP World and its partners envisage investing up to $1 billion over the next ten years in developing the supply chain infrastructure along the corridor.
This will include dry ports, silos, warehouses, container yards, cool and cold chain depots, freight forwarding and clearing activities.
The infrastructure investment will be in parallel with the implementation of the latest IT infrastructure and technology to ensure the efficient functioning of the corridor, and smooth, secure and transparent transfer of cargo throughout the entire transportation journey.
Dagmawit Moges, Ethiopia’s Minister of Transport, said, “As we kick off the journey towards prosperity, aiming at unlocking Ethiopia’s development potentials designed to propel the country into becoming an African beacon of prosperity, the transformation of the logistics industry is expected to play the leading catalytic role.
“Ethiopia aims to diversify its port access facilities and services to improve its trade corridor access routes; utilizing the Berbera corridor will surely have a potential to make Ethiopia a front runner in logistics operations, boosting the competitive advantage of delivering our products to the world market.
“The development of this Corridor will not only meet with the growing demand of Ethiopian’s international trade, but it would also enhance our Nation’s capacity in utilizing our existing major corridor both in terms of volume of trade and efficiency.”
Ahmed Bin Sulayem, Group Chairman and CEO of DP World, also commented, “As a leading global provider of trade and logistics solutions, we strongly believe that developing the Berbera Corridor into one of the major trade and logistics corridors will unlock huge economic benefits for Ethiopia, and support its ambitious development plans.
“It will create new jobs, attract new businesses and investment along the corridor, as well as diversify and strengthen the country’s access to international trade by having a direct, seamless and efficient link between Ethiopia and Berbera Port.”
“The road infrastructure that will connect Berbera Port to Wajaale at the border with Ethiopia, funded by the Abu Dhabi Fund for Development and the UK’s Department for International Development, is expected to be completed by the end of 2021.
“The road will link to the existing modern highway on the Ethiopian side and will further position Berbera as one of the key trade gateways in the region and will be one of the fastest and most efficient routes for Ethiopian transit cargo.
DP World has committed to investing up to $442 million to develop and expand Berbera port, with the first phase nearly completed. Further work is already underway on expansion of the quay to 1000 metres which will increase capacity to two million TEUs, operated by 10 key cranes.
