Berbera strategic to Ethiopia import-export: Port Manager confirms

[Siciid1986]

Berbera strategic to Ethiopia import-export: Port Manager confirms

 

Berbera (JSLTimes.com) - The port of Berbera is a gateway to Ethiopia with plans of using it as an alternative Port. In this regard, the Ethiopian government is developing the necessary infrastructure along the Berbera corridor. The construction of the 67 km Jijiga-Togochale road has just been finalized and the 245 km long road linking Togochale with Berbera is under process of construction to accommodate part of the country’s import via Berbera. The development of the port needs a substantial amount of investment.

 

Q ; Can you tell me the purpose of the planned development of the Berbera corridor?

Ahmed Yusuf Dirir ; Ethiopia has currently alternative sea routes on the Horn of Africa such as Djibouti, Mombasa and Port Sudan excluding of course, Assab and Massawa for the time being. However, Berbera port is in a better strategic location thus making it one of the most viable options to channel Ethiopian import-export activities. Thus, the infrastructure development project includes the construction of the 937 km road from Addis Ababa that passes via Harar, Jijiga, Togochale, Kalabeit and Hargeisa to link Berbera port. Out of the 937km road, 241 km is within Somaliland and 696 km is within Ethiopia. The Ethiopian government has already finalized the preparation for the construction of the road to the Somaliland border town of Togochale and is looking for sources of funds to finance the project.

The port of Berbera is owned and operated by the Somaliland Administration through an autonomous body called the Berbera Port Authority (BPA). The Port of Berbera is an attractive alternative to the Djibouti corridor for the Ethiopian import-export businesses. The Port is improving its management to give efficient loading and unloading services.

Somaliland has a coastline to the north of the country which extends over 850 km along the Gulf of Aden. The Authority manages Berbera Port and other small sea outlets in the country.

Q ; What are the major areas of the Port’s development endeavours?

Ahmed Yusuf Dirir ; We have acquired additional cranes to smoothly facilitate the loading and unloading services offered by the port. Furthermore, it has made available modern health facilities for the dock workers and the entire management staff, thereby avoiding sending patients to Hargeisa for medical and emergency treatments. It has also put in place new security cameras and constructed shades for the livestock destined for export.

Q ; Can you give me some background information as to why the Port was constructed in the first place?

Ahmed Yusuf Dirir ;The port was constructed by the former Soviet Union as a military base to challenge the influence of the West on the Horn of Africa. When the Siad Bare regime cut its relations with the Soviet Union, the United States of America took over the Port for the same purpose.

The former Union of Soviet built 300 meters long in 1960’s and another 330 was added by the US in the 1980’s. The port has a storage capacity of one million tons at a time, and it accommodates more than 1,000 ships per annum depending on both the length of the ferries and the activity in the port.

Q ; Do you have expansion plans?

Ahmed Yusuf Dirir; we are planning to expand the Port with potential investors for the expansion. The first plan is to build a container terminal to be separated from the current port. We also have selected a potentially good location for the station. Thus far, a number of investors are showing interest in the expansion which will be negotiated during the course of time with serious investors.

Q ; Are there any specific criteria for international investors who might show interest in the project?

Ahmed Yusuf Dirir ; At the moment, we are just reviewing the credentials and performance of potential investors in port construction. The usual criteria are, of course, the time schedule, the investment cost, the source of funds and the modality of financing which will be dealt with at length at the time of evaluating the potential bidders.

Getting financial grants or joint venture arrangements with the companies would also be other alternative options. We are planning to offer a contract period of some 20 years to manage the terminal. Currently, there are companies who have shown interest from Arab countries and China. Malaysian companies are also showing interest in the expansion of the terminal.

Q ; Being a competing port in the region, besides the strategic location, what other advantages do you have to offer to the potential markets around you?

Ahmed Yusuf Dirir ; In general we do charge very low fees when compared to the other ports around us. For instance, we ask only 200 dollars per ton of shipment while the figure for other port services is much higher. However, apart from that, we have a very fast port clearance system and we are currently expanding our capacity to carry more traffic at a time not only to handle shipments but also re-shipments for big international transit companies.

Q; Is there a possibility for the establishment of branches of financial institutions?

Ahmed Yusuf Dirir: We believe that it is very important to have banking and insurance the services at the Port for Ethiopian importers and exporters through the Port. It is hoped that commercial bank and insurance companies will open branches at the port as soon as the expansion activities are completed and the necessary infrastructure are put in place.

Q ; Do you have a plan to develop other ports in addition to Berbera?

Ahmed Yusuf Dirir: The Somaliland Port Authority is administering smaller ports such as Zeila and Mayerd and can add additional ports when its technical, financial and of Puntland and in the Indian Ocean. There are more than 73 pirates apprehended by Somaliland coastguards and detained in Madera Prison found along the road between Hargesa and Barbara.

Q ; How secure is the road between Addis Ababa and Berbera?

Ahmed Yusuf Dirir: There is dependable security when talk about the road between Togochale and Berbera in Somaliland. There is no reported incidence in this regard.

Q: Do you have any plan to upgrade the road from Togochale to Berbera?

Ahmed Yusuf Dirir: As I explained earlier, there is a project called ‘Barbara Corridor’ along the road from Ethiopia to Togochale and from Togochale to Berbera. Currently, the Somaliland and the Ethiopian governments are looking for sources of funds to finance the project.

Q: What other services does the Port provide?

Ahmed Yusuf Dirir: The World Food Program is using the port to transport food aid to Ethiopia and Somalia.

Q ; Are you saving problems in attracting investors?

Ahmed Yusuf Dirir ; It should be remembered that there should a conducive investment climate to attract investors to a given country. It is hoped that investors will participate in the development of the port along with the development of peace and security in the country.

Q ; What will be the capacity of the port after expansion?

Ahmed Yusuf Dirir ; It is estimated to accommodate two million containers per year.

Q ; Do you have any communication with South Sudan?

Ahmed Yusuf Dirir ; There is forwarding and clearing company operating in Berbera.

Q ; What assistance do you expect from Ethiopian government?

Ahmed Yusuf Dirir; We want to reiterate the fact that the Berbera port is very strategic for the Ethiopian Economy and for the sustenance of peace and stability in the Horn of Africa. All shipping transiting companies will benefit along with the increase with the import-export trades through the Berbera The Port will serve Ethiopian importers and exporters with minimal services charges unlike the excessive dues that the Djibouti Port charges. The service charge is 200 USD per container and no charge is imposed on Ethiopian transporters.

Q ; How much is Somaliland dependent on Berbera Port?

Ahmed Yusuf Dirir; Berbera Port contributes more than 75 percent of Somaliland national budget. When the expansion of the port finalizes, its contribution to the national budget significantly increases.

[PasserBy]

Ethiopia is doing its part to tarmac the road to Somaliland border. But so far the Silanyo government hasn't started to fix the tattered road from the border to Berbera. Silanyo says he is broke. International lenders are not coming forward to assist.

[Xaaji Xunjuf]

Our First Priority should be a road from burco to hargeysa and a road from Burco to Ceerigaabo , A road from berbera to wajaale can wait

[PasserBy]

I guess in Silanyo's twisted logic politics comes before economics. Hmmm... I don't see his government lasting more than one term.

[Xaaji Xunjuf]

The Road betweeen Wajaale and berbera is not a real priority the road is fine its just needs some road reconstructions .President Siilaanyo has bigger things to do than to make sure Ethiopian goods reach Ethiopia faster than they do now. Like creating Jobs for the Somaliland Graduates.

[PasserBy]

Xaji Borat,

 

Do you know how much money Somaliland can make from renting its port? Do you know how much money Djibouti makes from port fees? If Silanyo thinks the way you do then I don't see the light at the end of the tunnel for your enclave. I sure hope his government is not full of dunderheads like you.

[Xaaji Xunjuf]

What is the point of building a road from berbera to wajaale while no charge is imposed on the Ethiopian transporters helloow. Is this Xabashi Sniffing Xabag

 

When the Somaliland Govt double charges the Ethiopian transporters than we can talk about building a highway from berbera to wajaale.

[PasserBy]

The hell with the road until Silanyo extorts $$$$ from xabashis. In the mean time the port remains underutilized. ****** is ****** does.

[Xaaji Xunjuf]

PasserBy;730760 wrote:

The hell with the road until Silanyo extorts $$$$ from xabashis. In the mean time the port remains underutilized. ****** is ****** does.

Why are you so angry is it because you are landlocked the port belongs to me and no Highway will be built from berbera to wajaale any time soon. Your goods reach Ethiopia just fine . We have other priorities like building a road from burco to hargeysa the construction of that road already started.

[PasserBy]

I am not angry at all. I am rather astounded by the depth of your idiocy.

[Leezu]

We already know they will build their road for their masters soon... Its the road to the extension of Somali region of Ethiopia. Soon Berbera will have Tigray and Amhara dominated population.

[Xaaji Xunjuf]

^^ Thats what you wish the road its self its not bad it will connect wajaale and berbera its good for our road connection in the country in the long term its just we have other priorities right now than that road. As for Amharas and tigrays and other Habashis taking over our territory its just a wishful dream we Murdered the First white man on our soil in berbera lieutenant stroyan in the 1850s. When he was trespassing our territory and you think we will allow a black Ethiopian take over territory adeer dalkan rag ba iska leh. What did the legendary Maxamed Aadan Caws yawle say Miyaanan cadaan iyo madaw ba uun ku wada ciilin.