Somaliland to sign $700 Million deal with Bollore Africa Logistics.

[Xaaji Xunjuf]

Bollore Africa Logistics to sign $700 million deal with Somaliland.

Written by Bloomberg/

Dec 23, 2009 at 11:31 AM

Addis Ababa(Qarannews)-- Bolloré Africa Logistics, a unit of Bollore SA, may sign an agreement to manage the port of Berbera and oversee $700 million of upgrades to the facility in Somaliland , Abdillahi Duale, the foreign minister, said.

“Our discussions are already in an advanced stage,” Duale said today in an interview in the Ethiopian capital, Addis Ababa. “We have already made a basic agreement.”

Representatives of Bolloré, an investment company controlled by French billionaire Vincent Bollore, have met with Ethiopian Prime Minister Meles Zenawi and Somaliland President Dahir Riyale to discuss the agreement which will probably be signed next year, he said.

Berbera port handles food aid and other cargo bound for landlocked Ethiopia.

Port revenue provides approximately 75 percent of the Somaliland government’s $50 million in annual revenue. Somaliland, a former British protectorate that merged with Italy’s Somali colony in 1960 to form Somalia, has remained free of violence during the 18-year civil war in central and southern Somalia.

Source Bloomberg/Jason McLure

[Xaaji Xunjuf]

Published: 10 December 2009

 

Bolloré proposes Berbera-Adis Ababa transport corridor

 

 

Bolloré Africa Logistics, part of the privately-owned Bolloré Group, has come up with a plan to connect the Ethiopian capital with the Port of Berbera in Somaliland

Outlining the project in London yesterday (9 December), BAL's executive vice president, Dominique Lafont, made the point that Ethiopia, which has been landlocked since Eritrea became independent in the early 1990s, is today totally dependent for foreign seaborne trade on just one outlet, the port in Djibouti.

 

"A country the size of Ethiopia, with a population of 80 million, should clearly have alternatives for foreign trade," Lafont remarked.

 

"We think we can help Ethiopia. The Ethiopian government is very interested and we have the right experience in Africa to offer services on this new corridor."

 

BAL already provides successful long-haul trucking services in other parts of Africa and has developed what it calls a "corridor approach." Examples include Durban-Lubumashi (2950 kms), Dar Es Salaam-Bujumbura (1780 kms), Mombasa-Kigali (1670 kms), etc.

 

BAL's own road fleet comprises around 1500 tractors and trucks and 2200 trailers, together accounting for around 30% of its transport corridor requirements in Africa. This fleet is supported by preferential agreements with other trucking firms.

 

"Managing transport corridors is probably the biggest added-value service that we can offer our customers, because we can provide door-to-door services despite often very challenging physical, operating and security conditions," continued Lafont.

 

The Port of Berbera was formerly a Soviet naval base and, having checked out the infrastructure there, BAL estimates that over time major new investments in port facilities could be justified, although it could start up operations there fairly quickly.

 

However, some E100-200M is needed to bring the road connecting the port with the Ethiopian border up to a reasonable standard. BAL has plenty of experience operating ports with poor inland connectivity, so is confident that port operations could begin first, to "kick start" things.

 

The problem is raising finance for both the port and the road link, since Somaliland is not recognised internationally, so major development agencies such as the World Bank cannot be asked for help.

 

"We have been working on this for around 18 months and we are starting to get international support, but it's certainly a very difficult project," said Lafont. "In due time Eritrea may open itself to the world and that would provide Ethiopia with an outlet at Asmara, but that is not a problem for us. A country the size of Ethiopia easily justifies three sea ports."

 

Somaliland is the autonomous region that seceded from Somalia and it has its own government, seated in Haregeisa, which is still seeking international recognition as an independent Republic and has applied to join the British Commonwealth. Its area corresponds to the former British Somaliland.

 

The Berbera-Adis Ababa plan is among a number of projects in which BAL is now involved in the "top part" of Africa, as it meets what Lafont calls the "pan-African challenge."

 

It is in discussions with undisclosed local parties to set up joint ventures in both Egypt and Libya, covering port management and project logistics. In Algeria, it may become involved in a dry port in Skidah in the east of the country, serving the "oil corridor."

 

BAL is Africa's biggest port operator with a 50% share of the container market in West Africa. However, port operations account for only around 20% of BAL's activities. These embrace ship agency, ship repair (currently highly profitable), freight forwarding and airfreight as well as barging, trucking and, in Côte d'Ivoire and Cameroon, freight and passenger rail operations as well.

 

It has dry port and warehousing operations, provides commodity export and import services, as well as project management. Its comprehensive coverage has enabled it to step up its supply chain management and total logistic service activities.

 

Lafont also reported that BAL will develop Congo Terminal (Pointe Noire), where it is building a new deep water berth, as a transhipment hub for Far East-West Africa container traffic. As previously reported, APM Terminals is now part of the Congo Terrminal concession, with BAL and other local partners

[xiinfaniin]

"A country the size of Ethiopia, with a population of 80 million, should clearly have alternatives for foreign trade,"

 

A true statement

[Che -Guevara]

^That country needs to be broken up to managable size.

 

P.S. In few decades, Somalia will be run over by Ethiopians if there's no proper functioning government and control over our resources.

 

Makes you who will control Berbera if such investment is realised?

[Abu-Salman]

The real tragedy is that people with both little principles and experience mislead the masses; eg Bollore has earned an explosive image througout Africa thanks to its monoplies no other countries would accept on their soil, alongside all sorts of unethical corporate dealings.

 

Only when stability, transparency and uprooting of the corruption culture takee place that such endeavours attract a meaning; otherwise, we will mainly witness environmental disasters and sky-rocketing corruption with the associated inflation as it is hardly sane to hand over more money to an incompetent kleptocracy!

 

Above all, all serious experts do agree that any economic progress should be endogenous, starting with the primary or agricultural sector;oil and foreign investments usually distort the economy and gear it towards a consumption-orientated, heavily reliant one as witnessed all over the globe (with all sort of social and health consequences)...

[miles-militis]

It is indeed a good development so long as the benefactors are the people of Somaliland, tho’ it appears in long extension our neighbours are the benefactors, or so it appears, unless of course Oodwayne has inside intelligence with which he concludes otherwise.

 

"We think we can help Ethiopia. The Ethiopian government is very interested and we have the right experience in Africa to offer services on this new corridor."

 

Asamara seems to be on the scene with competition too. So, what is Riyaale to do to make certain Berbera gets the loot?

 

"We have been working on this for around 18 months and we are starting to get international support, but it's certainly a very difficult project," said Lafont. "In due time Eritrea may open itself to the world and that would provide Ethiopia with an outlet at Asmara, but that is not a problem for us. A country the size of Ethiopia easily justifies three sea ports."

 

Till then,

[miles-militis]

Let us hope that is he case, shall we? tho' I have learnt long time ago, never say never.

[Che -Guevara]

Oodweyne....It won't be Sharif or Al-Shabaab but it does give a pause. An entity with no capicity and neighbor bent on regional hegemony and company whose budgets is millions bigger than Somaliland's and sleazy nature of African politicians, add it up.

 

Of all of it, the biggest concern is the investors with so much disposable capital investing entity whose entire budget is less 40mil and politicians that can be bought on the dime, who will be in control. I can safely bet on the investors.

[Thankful]

 

 

However, some E100-200M is needed to bring the road connecting the port with the Ethiopian border up to a reasonable standard.

BAL has plenty of experience operating ports with poor inland connectivity, so is confident that port operations could begin first, to "kick start" things.

 

The problem is raising finance for both the port and the road link, since Somaliland is not recognised internationally, so major development agencies such as the World Bank cannot be asked for help.

 

"We have been working on this for around 18 months and we are starting to get international support, but it's certainly a very difficult project," said Lafont. "In due time Eritrea may open itself to the world and that would provide Ethiopia with an outlet at Asmara

, but that is not a problem for us. A country the size of Ethiopia easily justifies three sea ports."

 

I just don't see them putting this much effort into something that will cost so much.

 

If NW Somalia's admin had the slightest amount of political skills, they'd be able to demand recognition from atleast one country for this deal.

 

I think this news should be put with the other bogus news, because this seems to be the crap like the whole hydrocarbon blocks that President Riyaale supposedly had offered for sale before. What ever happened to that?

[Che -Guevara]

Oodweyne...Actually, this particular situation replays itself all over Africa and will likely intensify since the new scramble for Africa is already underway. I think it is fair to say the governmental institutions in the continent are not strong enough to stand upto or simply with multi-national corporations. The situation would be even more acute since strong national governments from the west, the middle east and far east are backing their individual corporations. It is no longer a corporation looking for profit but wealth country looking for resources and place to multiply their capital.

 

It is difficult for African countries with decent governments, now imagine how it's gonna be for entity with embyronic institutions.

 

 

N Godane sends his best

[Che -Guevara]

^By all means!

[Abu-Salman]

^^^Mr. Abu-Salman,

 

As ever without a fail, my friend, you are piping up for our inconvenience, all manner of stuff and nonsense, dear lad...

 

Hence, try again, dear lad; but, this time around see to it, the "emotional constipation" in which you develop the minute you heard anything positive said about Somaliland, shouldn't be clouding your judgement, indeed. And, then, perhaps, if we are so incline in that manner, we shall take you seriously, at that time, indeed.

 

Regards,

Oodweyne.

What you may ignore is that I'm actually closer than you (both in the Somali sense and otherwise that is) to many parts of Somaliland, including Berbera or other places crucial to such plans (are we so primitive that such clarifications are necessary); thus, no need to add me too so swiftly to that all too convenient category of "Somaliland ennemy".

 

Now, try and convince us why deals of such amplitude and with such ramifications, linking us to a neo-colonial, discredit multinational will help us in the long term (especially in the light of our current kleptocratic culture and institutions).

 

Do not place way too much value into "recognition" thinking the end justify the means when the priority should be transparency first...

[AfricaOwn]

Originally posted by Abu-Salman:

quote:^^^Mr. Abu-Salman,

 

As ever without a fail, my friend, you are piping up for our inconvenience, all manner of stuff and nonsense, dear lad...

 

Hence, try again, dear lad; but, this time around see to it, the "emotional constipation" in which you develop the minute you heard anything positive said about Somaliland, shouldn't be clouding your judgement, indeed. And, then, perhaps, if we are so incline in that manner, we shall take you seriously, at that time, indeed.

 

Regards,

Oodweyne.

What you may ignore is that I'm actually closer than you (both in the Somali sense and otherwise that is) to many parts of Somaliland, including Berbera or other places crucial to such plans

We don't believe you. Get some more people.

 

Ps. I'm a lot more closer than you. Lets play that game. What line should we start at? Berbera or Burco?

[Jacaylbaro]

Good Job Somaliland .................

[SeefTa]

Originally posted by Xaji_Xunjuf:

Published: 10 December 2009

 

"A country the size of Ethiopia, with a population of 80 million, should clearly have alternatives for foreign trade," Lafont remarked.

 

"

we think we can help ethiopia . The Ethiopian government is very interested and we have the right experience in Africa to offer services on this new corridor."

note: ethiopia has never internationally expressed support for somaliland recognition.

 

 

NEEF WALBA MEESHU IS DHIGAA LAGU QALAA