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DP World, a Dubai-based port operator, revealed its intention to set up a logistics facility in landlocked Ethiopia, a move that comes as the company is developing a port in neighboring Somaliland.
The company did not disclose financial details nor provided any timetable for the project, but said it had signed a number of agreements in Ethiopia to pave the way for development. The new logistics facility would serve as a hub for transporting goods to and from landlocked countries in Africa.
DP World currently has a marine terminal under development in Berbera, Somaliland, which is likely to be a link to the planned logistics facility in Ethiopia. In 2016, the company obtained a 30-year concession to manage and develop the multipurpose port, committing a total investment of $ 442 million in the project.
Yet the company has recently faced challenges in the Horn of Africa. Earlier this year, the government of Djibouti took control of the Doraleh Container Terminal, which was built and operated by DP World. The company announced in February that it had begun arbitration proceedings against Djibouti in the London International Arbitration Court, in order to protect their rights or to obtain damages and interest.
While announcing his logistics project in Ethiopia and CEO Sultan bin Sulayem claimed that this decision strengthened the position of the company in East Africa. "Business groups in Dubai can still benefit from the presence of DP World in different countries, including Rwanda and Egypt, where re-export opportunities are plentiful," he said.
The U.A.E.E. imported $ 127.6 million worth of goods from Ethiopia in 2017, accounting for 4.5% of its total exports, according to World's Top Exports.
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