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

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.”


US removes some Chinese furniture, modems from planned 10% tariffs

Updated 17 August 2019

US removes some Chinese furniture, modems from planned 10% tariffs

  • US President Donald Trump on Tuesday delayed more than half of the proposed tariffs until December
  • The $114 billion retail furniture industry has been among the sector’s hardest hit with price increases due to Trump’s tariffs

WASHINGTON: The Trump administration is sparing some Chinese-made household furniture, baby items and Internet modems and routers from its next rounds of 10 percent tariffs, it said on Friday.
The US Trade Representative’s office released a complete list of the items that were removed from $300 billion in tariffs scheduled to go into effect on Sept. 1 and Dec. 15, some of which had already been hit with 25 percent tariffs.
Trump on Tuesday delayed more than half of the proposed tariffs until December, saying it would help shield businesses and consumers from the US-China trade war fallout during the Christmas selling season.
The new list of 44 categories of spared imports, worth about $7.8 billion according to US Census Bureau data, also includes some chemical compounds used in the manufacture of plastics. Reuters previously reported that bibles and religious texts would be spared from the tariff list.
Modems and routers made in China were part of a $200 billion list of products hit with tariffs last September that have since been raised to 25 percent. Friday’s exclusion would avoid a further 10 percent hike as Trump imposes tariffs on Sept. 1 to products in the same broad customs category, including smart watches, smart speakers and Bluetooth headphones.
The bulk of the items removed from the tariff list were furniture products, including wooden- and metal-framed chairs and those made of plastics. Some of these were previously hit with tariffs as part of broader furniture categories.
Baby-related furniture items also were spared, including toddler beds, bassinets, cradles, strollers and children’s seats.
The $114 billion retail furniture industry has been among the sector’s hardest hit with price increases due to Trump’s tariffs, which rose to 25 percent in May.
The US Labor Department said on Tuesday that the price index for household furnishings rose 0.4 percent in July, marking its third consecutive monthly increase and contributing to broad-based growth in consumer prices during July.