DP World launches expansion of port in Somaliland

The soporific seaside town of Berbera is slowly transforming as it takes on a major role on the Red Sea shipping route, allowing breakaway Somaliland to dream of prosperity and even recognition. (AFP)
Updated 12 October 2018
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DP World launches expansion of port in Somaliland

  • Somaliland broke away from Somalia in 1991 and has acted as a de-facto independent state since then but is not internationally recognized
  • DP World said the first phase of expansion will consist of constructing a 400-meter quay as well as the development of a free-zone

HARGEYSA: Dubai state-owned port operator DP World has launched a $101 million project to expand a port in the breakaway region of Somaliland.
Somaliland broke away from Somalia in 1991 and has acted as a de-facto independent state since then but is not internationally recognized. The United Arab Emirate’s Dubai government owns DP World.
The port in Berbera exports camels to the Middle East and imports food and other items, but Somaliland hopes it will provide an alternative for neighboring Ethiopia — a landlocked country of 100 million which relies on Djibouti for its trade.
DP World said the first phase of expansion will consist of constructing a 400-meter quay as well as the development of a free-zone, with Emirati firm Shafa Al Nahda the contractor.
“This investment in Berbera ... and the expansion is of a huge benefit for Somaliland to develop its economy. We are thinking to be competitive with our ports in the region,” Muse Bihi Abdi, the breakaway region’s president, told journalists.
The first phase is part of an expansion deal signed with DP World in 2016 and worth a total of $442 million.
DP World’s chairman and chief executive Sultan Ahmed bin Sulayem said Berbera would serve Ethiopia’s expanding economy and its increasing trade.
“We did not get assurances from them. (But) they need every port capacity in Ethiopia. It is only a matter of opening the port and making sure the road is there,” he said in a news conference.
But the launch comes amid opposition from Somalia, which believes its sovereignty is being violated. Senior officials have said such deals “bypassed the legitimate authority” of Mogadishu.
Bihi Abdi dismissed the claim. He said agreements with such international firms would boost the country’s quest to achieve international recognition.
“Because when DP World came to Berbera, there was attention from other countries and big business companies because most of them were thinking that Somaliland was not a recognized country and ignored the peace and stability in Somaliland,” he said in a news conference in Hargeysa.
“DP World was a big, international company which dared to come to Somaliland and I hope a lot of other companies from any continent will follow their path and come to Somaliland.”


Nissan panel to recommend outside director to chair board: report

Updated 39 sec ago
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Nissan panel to recommend outside director to chair board: report

  • Under Nissan’s current corporate charter, the position of board chair is automatically appointed to head the company board
  • Former Chairman Carlos Ghosn had filled both roles prior to his arrest in November
TOKYO: A Nissan Motor governance committee will recommend the appointment of an external director as board chairman, a role distinct from company chairman, in a move to decentralize power at the top level, the Nikkei business daily reported on Sunday.
Under Nissan’s current corporate charter, the position of board chair is automatically appointed to head the company board, the Nikkei said citing a source. Former Chairman Carlos Ghosn had filled both roles prior to his arrest in November for under-reporting his salary for eight years.
The issue of Nissan’s chairmanship is now particularly important after the Japanese firm identified the concentration of power in one executive as one of the reasons Ghosn was able to carry out his alleged fiscal misconduct.
Speculation has swirled about whether the newly appointed chairman of France’s Renault, Jean-Dominique Senard, would assume the chairmanship of the Japanese automaker.
The Nikkei report comes after the governance committee said in a statement that the separation between operation and oversight was among topics discussed on Friday at the committee’s third meeting since it was formed in December after Ghosn’s arrest.
The panel, comprising three Nissan external board directors and four third-party members, is scheduled to make recommendations to Nissan’s board in March on how to tighten lax governance and approval processes for matters including director compensation and chairman selection.
A spokeswoman for the committee said it could not comment on potential recommendations before they are submitted to the Nissan board. Nissan did not immediately reply to emailed request for comment.