A groundbreaking ceremony for the road linking Ethiopia with Somaliland (Berbera Corridor) took place on Thursday 28 February.
The “Berbera Corridor” is a collaboration project between Somaliland, a Dubai-based Company and the government of Ethiopia to jointly develop the port of Berbera.
The agreement created a new company to manage the Port of Berbera; the ownership shares of the company have been allocated with DP World taking 51% ownership of the company, Somaliland will own 30% of the shares, and Ethiopia will own 19% of the shares.
The port expansion project is expected to be completed in a year. When that happens, the capacity of the port should increase by 50 %.
The agreement calls for infrastructure investment of $442 million to upgrade the existing Berbera Port and to build a new adjacent Container Port. It includes millions of dollars more to build a new road from Berbera to the Ethiopian border town of Wajale.
The expanded Berbera port and the new road will provide Ethiopian government and Ethiopian business community to have increased capacity to import and export merchandise to support the growth of the Ethiopian economy.