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.”


South Korea imports no Iran oil in November despite sanctions waiver

Updated 16 December 2018
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South Korea imports no Iran oil in November despite sanctions waiver

SEOUL: South Korea did not import any Iranian oil for the third straight month in November, customs data showed on Saturday, even though it has a waiver from sanctions targeting crude supplies from the Middle Eastern country.
South Korea and seven other countries were in early November granted temporary waivers from US sanctions that kicked in that month over Tehran’s disputed nuclear program.
But it kept imports at zero as buyers have been in talks with Iran over new contracts, with industry sources previously saying they expected arrivals to resume in late January or February.
With no Iranian cargoes arriving for three months, South Korea’s imports of oil from the nation were down 57.9 percent at 7.15 million tons in January-November, or 157,009 barrels per day (bpd), the customs data showed. That compares to nearly 17 million tons in the same period in 2017.
South Korea is usually one of Iran’s major Asian customers. Although the exact volumes it has been allowed to import under the waiver have not been disclosed, sources with knowledge of the matter say it can buy up to 200,000 bpd, mostly condensate.
Condensate is an ultra light oil used to make fuels such as naphtha and gasoline.
But as Iranian condensate supply has been limited due to the sanctions and rising domestic demand in Iran, South Korean buyers have been looking for alternatives from places such as Qatar.
In total, South Korea imported 12.71 million tons of crude oil in November, up 1.2 percent from 12.59 million tons a year earlier, according to the data.
South Korea’s crude oil imports from January to November inched up 0.6 percent from the year before to 131.23 million tons.
Final data on November crude oil imports is due later this month from state-run Korea National Oil Corp. (KNOC).