DP World, Transport Ministry Sign MoU to Develop Berbera Corridor

May 6/2021(ENA) Dubai Ports World (DP) and Ministry of Transport have signed a memorandum of understanding to develop and make the major trade and logistics corridor of the Ethiopian side of the road linking to Berbera.

DP World and its partners envisage investing up to 1 billion USD over the next ten years in developing the supply chain infrastructure along the corridor, it was learned.

On the occasion, Transport Minister Dagmawit Moges said Ethiopia aims to diversify its port access facilities and services to improve its trade corridors access to route.

She noted that “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.”

According to her, the development of this corridor will not only meet the growing demand of Ethiopia’s international trade but also enhances the nation’s capacity in utilizing the existing major corridor both in terms of volume of trade and efficiency.

DP World Chief Executive Officer, Sultan Ahmed Bin Sulayem said on his part “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 ambitious development plans.”

He added that 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.

DP World has committed to investing up to 442 million USD to develop and expand Berbera Port with the first phase to be completed and go operational by the middle of this year.

At that point, the port will have the capacity to receive 500,000 Twenty-foot equivalent units (TEUs) per year and handle vessels up to 400 meter in length.