DP World has started the development of a new edible oil terminal at the Port of Berbera in Somaliland, which will reduce supply chain costs and create vital local jobs.
The company said in a statement that it has already agreed to a long-term lease for the facility.
The edible oil terminal will be the latest addition to Berbera’s growing trade ecosystem, following the recent opening of the Berbera Economic Zone (BEZ), 15 km from the port along the Berbera to Wajaale road (Berbera Corridor) that connects to Addis Ababa in Ethiopia.
Suhail AlBanna CEO & MD DP World – MEA region
“Our development of the edible oil terminal is a game changer for the region and is another example of how we are reducing the cost to trade by finding solutions that meet the needs of our customers, while having a positive impact on local communities in terms of job creation and easier access to goods. As part of the Berbera port and economic zone ecosystem, this facility is the type of integrated port infrastructure that attracts international investors such as EGI looking to get closer to their customers.”
DP World plans to transform Berbera, which sits alongside one of the world’s busiest sea routes, into an integrated maritime, logistics and industrial trade hub to serve the Horn of Africa, a region with a population of more than 140 million people.
The initial phase of the terminal is already fully leased on a long-term basis to Mzahim Investment, a subsidiary of Essa Al Ghurair Investments (EGI) of the UAE. Mzahim Investment will also develop a local packaging plant in Berbera to supply existing customers in Somaliland and the wider Horn of Africa, which could employ up to 100 people, as per the company.
“The presence of DP World played a significant role towards encouraging businesses like ours to invest in the region. The Berbera edible oil facility will allow us to manufacture locally, ensuring essential commodities such as edible oil are affordable and freshly available to the locals. Through manufacturing, we can play a role in creating employment and nurturing talent, especially in the skilled and semi-skilled workforce,” commented Mr. Essa Abdulla Al Ghurair, Chairman of Essa Al Ghurair Investments.
