DP World continues to target expansion in the Horn of Africa, announcing plans to establish a free trade zone (FTZ) to complement the Port of Berbera in Somaliland.
DP World is modernizing and expanding port infrastructure in Berbera as well as in Djibouti at the Doraleh Container Terminal as part of its strategy of investing in gateways in developing countries rather than transshipment hubs.
The FTZ, which is based on the terminal operator’s flagship FTZ at Jebel Ali, will support warehousing, logistics, traders, manufacturers, and other related businesses, and occupy 12.2 square kilometers (4.7 square miles) upon completion.
The Dubai-based terminal operator will develop the first phase on 4 square kilometers before beginning work on each subsequent phase when the prior phase reaches 85 percent occupancy.
The company in September won a 30-year concession to manage and develop a multipurpose cargo complex at the deep-sea port of Berbera in Somaliland. The first phase of development includes a 400 meter (1,312 foot) quay, a 250,000-square-meter yard extension and gantry cranes and reach stackers. The port currently has no shore cranes.
That work is taking place as DP World invests $590 million in the Doraleh multi-purpose port consisting of 15 berths with an alongside depth of 16 meters and a 23 hectare (56.9 acre) container handling yard. When complete, the terminal will be capable of handling vessels up to 100,000 deadweight tons.
Traffic at DP World rose 8.2 percent in the first half of the year to just short of 34 million TEU as revenue rose 9.6 percent at $2.3 billion and profit slipped to $606 million from $608 million.