Daleย Calkeld,ย managing director, said: โWe have opened our office there, and have now been granted our business licence and transport licence in Somaliland, in addition to our existing licences in Ethiopia.โ The company expects to offer port handling, fast Customs clearance and smooth delivery throughout Ethiopia and East Africa.
He explained thatย DP Worldย and Somaliland have been pursuing the corridor to Ethiopia โheavilyโ and that a new road โย theย Wajaale that connects to Addis Ababa โย is nearly finished. The development is garnering great interest from shipping lines and logistics companies alike.
Progress at the port area of Berbera has been ongoing for several years, first with the opening of a container terminal during 2021 and then the inauguration of theย Berbera Economic Zone (BEZ)ย earlier this year. DP World said that the port and the BEZ is transforming the area into a major trade hub in the Horn of Africa.
Expansion of theย port of Berberaย โ a multipurpose facility that comprises bulk and breakbulk handling facilities โ is expected to facilitate trade equivalent to approximately 27 percent of Somalilandโs GDP and 75 percent of regional trade by 2035.
So far, Berbera portโs activity has been focused on Somaliland and Somalia, and its operations have not yet reached into Ethiopia because of Customs issues and agreements. The East African neighbour first indicated its plan to take a 19 percent stake in the port back in 2017. After backing away from the deal to investigate alternative options, notably in Eritrea, Ethiopia has come back on board, believing Berbera to be its best option for connectivity.
Forย Calkeld, the port facilities and its link to Ethiopia are โsuitable for everythingโ, especially in comparison to the poor infrastructure that connects Djibouti to the country.
With its approvals in place, and the support of the Somaliland government,ย ALS Worldwideย is now focusing on mobilising equipment to Berbera. โWe will be on the ground before the end of the month. The office is already there and now it is getting our trucks there to start loading cargo out. It is all systems go.โ
In addition to the immediate set-up of operations, ALS Worldwide is also in the process of developing an app to help clients track their cargo. โWith the app, it will show the details and photographs of the cargo and is tracked through GPS all the way to where it is going. It will assist us as much as the client to see where the cargo is.โ A unique selling point for customers operating in Africa.
Calkeld is optimistic about the potential of Berbera in facilitating trade in East Africa, based on his experience in the region for the past seven years. โWe have been across that desert [from Berbera to Ethiopia] hundreds of times and not had one bit of damage. We are in regular contact with the client offering progress reports along the way. We are in good stead to open up and have a smooth operationโฆ soon everyone will follow.
โSomaliland wants to develop and support the region. It wants the corridor and good relationship with Ethiopia. And putting those things together spells a good future.โ