Djibouti, Somaliland in bitter port feud

[Lake]

- After Saudi Arabia last month surprisingly lifted its damaging 2001 ban on the import of live livestock from the Horn of Africa, a lucrative export trade has been revived. But this has sent Djibouti and non-recognised Somaliland into a new fight over becoming the region's leading export harbour, with Djibouti even expelling Somalilander diplomats.

 

Apart from Djibouti, Somaliland's city of Berbera is the only port on the northern coast of the Horn able to serve land-locked Ethiopia, with its large trade on a regional scale. The small state of Djibouti - which has its greatest revenues from its port facilities - is best connected with the Ethiopian hinterland; by road and train, but relations between Djibouti and Addis Ababa are not always the best.

 

With the December lift of Saudi Arabia's 5-year livestock import ban from the Horn region, trade passing through the ports of Djibouti and Berbera are expected to boom. Before the ban was announced in 2000, livestock was among the main export goods from Ethiopia, Djibouti and Somalia/Somaliland.

 

As soon as the ban was lifted, Djibouti authorities announced that their diplomacy had plaid a vital part in achieving this aim. The Saudis and other Arab nations officially had imposed the ban in 2001 after an outbreak of Rift Valley Fever among cattle, but critics claim that the outbreak had never occurred on the Horn. Also the exceptionally long ban indicated that it was rooted on protectionist policies.

 

Several diplomatic efforts to have the ban lifted failed throughout the years, creating a crisis for the regional livestock industry. Livestock constitutes the backbone of the Somaliland economy and is essential to most rural communities in Djibouti, Ethiopia and Somalia, with Saudi Arabia historically being the main market.

 

Djiboutian diplomats claimed they were to be thanked for the lifting of the Saudi ban. Djibouti had launched several proposals to assure animal health for exports to Arab nations. Therefore, the nation's Foreign Ministry held in December, other countries in the region should award Djibouti by using its port facilities to export livestock. Djibouti would now become a regional "hub for livestock exports," the Ministry said in a statement.

 

At Djibouti port, the Ministry claimed, quality would be assured due to the August 2004 establishment of a quarantine centre with a veterinary clinic and laboratories. These modern US$ 6 million facilities would assure that another regional livestock would be avoided in future. Shortly after these statements, President Ismail Omar Guelleh inaugurated a new port terminal worth US$ 40 million, mainly aimed at serving Ethiopia's trade.

 

Neighbouring Somaliland however for long has been suspicious on Djiboutian efforts to secure a monopoly situation for its port. Two years ago, Somaliland authorities accused Djibouti of trying to control its economy following a proposal by Djibouti aimed at making its ports a gateway for Somaliland's livestock exports to Arab Gulf countries.

 

Somaliland's Berbera port is seen as the country's greatest potential for economic development, and only last week, port authorities disclosed they had made a purchase of US$ 640,000 worth of dock loading and stacking equipment used for lifting goods and container freight - one of the first major investments for around 20 years in this port.

 

Answering the Djiboutian initiative to capitalise on the lifting of the Saudi ban, Somaliland authorities in December banned the sending of home-grown cattle to Djibouti for re-exportation. Somalilander livestock heading towards Saudi Arabia was to be shipped out from Berbera, authorities ordered.

 

With its modest investments in the Berbera port, Somaliland also hopes to gain a part of the Ethiopian livestock export market. Ethiopia is not uninterested, as it currently has better ties with Hargeisa than with Djibouti, following the latter's low-profiled support for the defeated Somali Islamists.

 

Underlining the seriousness in the harbour fight between the two neighbours, Djibouti immediately expelled Somalilander diplomats in what has been described as a tit-for-tat reaction. No country, not even Djibouti, officially recognises Somaliland, which nevertheless has diplomatic stations in most countries of the region.

 

Indeed, without securing transit revenues from other livestock exporters, Djibouti is to gain little from the Saudi ban lifting. The Djiboutian livestock industry is in a deep crisis after years of drought. According to the US agency Famine Early Warning System Network (FEWS), the 'Heys/Dada' rains - which are essential for the viability of coastal dry season grazing areas - performed poorly also in November 2006.

 

"These rains serve a vital function in the migration cycle of pastoralists," the latest FEWS report on Djibouti warned, noting that pastoralists were facing a crisis. "Successful recovery for pastoralist communities requires prevention of distress livestock sales and continued restocking over several consecutive seasons," the US agency added.

 

Also in Somaliland and Ethiopia, the last few years have not been the best for pastoralists, but in large parts of these two countries, relatively sound stocks of livestock are still present, ready for exportation to the Saudi market.

 

Exports of Somaliland livestock has started already. In late December, the first consignment of over 400,000 livestock heads were supposed to be exported to Jeddah, Saudi Arabia, to coincide with the Hajj, whose rituals require that every pilgrim kill one sheep as a sacrifice. Reportedly, almost a quarter of these sheep had however been smuggled to Djibouti for re-export to Jeddah. Berbera port authorities have yet to report how many went through their facilities.

 

Also Djibouti port authorities rapidly reported cattle export successes after the ban was lifted. Only four days after the lifting, over 10,000 livestock heads - of unclear origin - were shipped to Saudi Arabia. The port has been made ready to receive "thousands of animals on a daily basis originating from bordering countries," Djibouti port authorities state optimistically.

 

 

http://www.afrol.com/articles/23556

[Ahmed_Guree]

And where would Somaliland get livestock from?

[A.J. Timacadeh]

i think the livestock raised in djibouti should go to the port of djibouti and the livestock raised in somaliland should go to the port of berbera. ethiopia can decide for itself who it wants to do business with

[A.J. Timacadeh]

why do somali's always have to complicate things

[SomaliThinker]

Djubouti in this point is being greedy, wanting to be the only nation in the horn to export out. I have no clue why that nation is surprised that somaliland said no to use thier port. Somaliland has port the should use it to gain the money to develop that port and somaliland as whole, instead of giving money to djubouti so they can develop.

[A.J. Timacadeh]

that is exactly my sentiment. i am getting a bit annoyed with djibouti interference with issues concerning somalia and somaliland. if they wish to have a say in somali negotiations then they ought to join their somali brothers in a state otherwise stay out of it

[Jacaylbaro]

Djibouti sees Somalia is chaos and want to take all the chances ,,,, they under-estimated somaliland but the competition is going on.

 

They don't have a good relationship with Ethiopia and Somaliland, and now for sure they don't have good relationship with A/Yusuf so that they won't succeed with their intentions. Make friends before you proceed with your proposals.

 

Saudi Arabia is also giving Djibouti the green light but they can't help when things go so complicated.

[Peacenow]

Competition is good and very healthy, this bodes well. Berbera City, should create a distinct management that is separate and clear.

Say the port should be managed by the Berbera Port Authority. With it's management set free under charter to make the business decisions that are correct for the development of the port.

Same process should happen for Hargesiya Airport and other municipal centres.

[Jacaylbaro]

Things are starting now ,,,,,, that are a pretty good ideas but Insha Allah things will be fine.

[Gordon Gekko]

Berbera port has a long way to go ppl, let's not trick ourselves. Djibouti port invests $6 MUSD, Berbera a puny $640K, you don't even have to do the math. Berbera needs to refine it's administration, I liked the idea of a port authority as one member here mentioned. I think the hardest part is getting the necessary funds though as the ports maintenance and system is evidently poor. Finding a financier for this kind of project can be hard.

[LANDER]

^Even more pertinent is the fact that the DJ port is managed by the Dubai group which has tonnes of experience worlwide and has become a leader in that type of management. Djib for decades has been upgrading its port structure with the help and interest of various foreign countries, groups and parties so in as far as infrastructure is concerned they are definitely ahaead of any port in the area. Nevertheless Berbera has plenty of oppurtunity because DJ is an overpriced port and is often run in a greedy fashion thinking they already have a monopoly locked down when in reality it is not the case. U ppl are absolutely right when you speak of having an independent organ run the port in berbera I think that would be the best option to improve competitiveness. However, as with all things in business, the port's success is positively correlated with the business savy and ingenuity of its managers private or otherwise.

[Xargaga]

I agree with the idea of having an independent organ operate berbera Port. But the question is would it happen soon? I believe that somaliland is undergoing some political crisis right now, and without economic transparency and accountability little is going to be done. right now the legislature and the judiciary are in total disagreement, on how to interpret and implement the constitution. While the legislature which has a majority from opposition parties would like to ratify and ammend issue for the sake of development, the the judiciary would overule. simply because they are under the influence of the executive branch, which consists totally corupt and arogant self centered fellows. As you all well know the Berbera port is the main source of income for Somaliland, including the Fuel storage Depot left by the Americans. These facilities are runned by some government individuals and they openly refused to have the fuel depot revenues audited.Likewise the port revenue is under contstant emmbezlement.So far no reforms would take place since whatever delibarated by the parliamentary committees, and passed by the legislature would always be struck down by the partisan Supreme court. A good example is that of the press freedom. The haatuf editors were detained regarless of their constitutional rights under the freedom of press.Now that the case went to the supreme court, the partisan Judge ruled in the favor of the government, and also nullified the defendants, and every somalilanders constitutional rights of freedom of speech. The main question is, would the same administration Privatize the port/Airport and let their corupt System changed? I dont think so.

 

B]Cidna Umamaqna Ceelna Umaqodna?[/b]

[Abu-Salman]

From what I know, The Saudi authorities requested a livestock screening centre to be built in order to control any outbreak of epidemy.

 

Then a Saudi company invested in Djibouti, helped with foreign aid and in concert with local authorities, to built that centre.

 

Do you have any other choice than to comply with your client demands, if you want to expot that is?

[Jacaylbaro]

yes we do have other choices coz it is our livestock ,,, not Djibouti's livestock ,,,

[LANDER]

Originally posted by Djib-Somali:

From what I know, The Saudi authorities requested a livestock screening centre to be built in order to control any outbreak of epidemy.

 

Then a Saudi company invested in Djibouti, helped with foreign aid and in concert with local authorities, to built that centre.

 

Do you have any other choice than to comply with your client demands, if you want to expot that is?

That may be true but what your leaving out is that it was Djib diplomats who convinced the Saudis to make everybody export from their port. Somaliland authorities don't have the greatest relationship with the Saudis and that was a very good tactical move on behalf of Djibouti. Ruthless, greedy and cunning maybe, but certainly in the best interest of their port. Furthermore, this exclusivity may be applicable for Saudi but what about the rest of the gulf countries. Where there's will there's a way, Somaliland can and must try to avoid having to use the Djib port exclusively for livestock export. In light of what has been said by Nabadshe though, is it really in a position to make such moves any time soon? I hope things change and very quickly. The presidential election next yr is the best chance for that.