“Shirkaddii P&O Port waxa ay ku fashilantay in ay qabatasho qadashadii loo igmaday, DP-WORLD si toos ah uma maamuli jirin waxaana ceeb ku noqotay sida P&O ay wax u maamushay sidaas awgeed ayay la wareegtay oo waxa ay soo dirsatay shirkad cusub oo aan dib kasoo sheegi doono magaceeda,” ayuu yiri madaxweynaha maamulka Puntland.
“Shirkadda abuurantay waxaa wada leh DP-World iyo Puntland, waxaana ku leenahay 25% inta kalena waxaa qaadaneysa DP-World, waxaa saaran mas’uuliyad ah in ay wax badan ka qabato horumarinta Dekedda,” ayuu markale hadalkiisa sii raaciyey madaxweyne Deni.
Is this a joke?
A new UAE company that they have not declared yet? Why not, does it exist or will it just be a rebrand ?
25% 75% split??? The less said about this the better.
Kicking out DP World from Bosaso was one of the demands by the Bari Isimo during the Deyano fiasco.
To save face Deni “renegotiated” the deal.
It is laughable to say the least. Flies in the face all norms of business dealings, specially for a global company like DP World that has processes and procedures in place.
Bosaso (PP News Desk) — Puntland State President Said Abdullahi Deni today publicized “successful renegotiation of DP World concession to run Bosaso Port”. Speaking to regional civil servants, traditional leaders and other notables at Waaciye village in Bari.
President Deni said that “our argument was that P&O had failed to successfully manage Bosaso Port. As a result of this failure the concession will have to be renegotiated. DP World was not directly involved in the management of the port. A joint venture between DP World and Puntland State Government has been formed”.
Under the new arrangement, Puntland State owns 25% of the stake. Under the previous concession Puntland did not own any stake” said President Deni whose remarks will pile more pressure on his predecessor Dr Abdiweli Mohamed Ali whom he accused of selling Puntland short.
DP World acquired P&O nearly two years after Puntland State granted P&O a controversial thirty-year concession challenged by the Federal Government. In 2018 the Somali Federal Parliament banned DP World from operating in Somalia. The United Aran Emirates government owns DP World, which was delisted from Nasdaq in 2020.
President Deni said that the new joint venture would be launched soon. He expects that a new Somali federal dispensation could waive the ban on DP World.
I just fail to see where Bosaso will fit into DPWorld’s puzzle?
Will it be possible for them to get a new deal at all?
Waa suaal fiican laakin war-jiraa cakaara.
This is getting absurd. So the 25% is not even in the new contract agreement but just a word of mouth. By that token, it means DP World gets Bosaso Port 100% and at its own discretion by give back up-to 25% to Puntland. The 25% is not guaranteed by a contract.
I wouldn’t be surprised if in the new agreement there is a “clause” that gives DP World rights to terminate the deal at its discretion as well.
This is the worse position to be in a contractual agreement.
If a deal is not in writing it do not exist, they are lying, they just don’t want to tell the public that DP World has a 100% stake.
Such deals exit in other ports around the world.
Dowladda Puntland Iyo shirkadda DP World ayaa kala saxiixday Qandaraaska dhismaha dekedda Bosaaso.
Wasiirka wasaaadda Dekedaha iyo gadiidka badda Dowladda Puntland Mudane Axmed yasiin Saalax iyo Nabil Milad Abou Rjaili oo ah General Manager Shirkadda Mar Marine oo ah Shirkada qaadatay qandaraaska dhismaha dekedda Bosaaso
Suhail Al Banna, CEO and Managing Director DP World Middle East and Africa ay Si rasmi ah u kala saxiixday Qandaraaska dhismaha Dekedda Bosaaso.
Waxaana kala qayb-galay Gudoomiyaha Gobolka Bari Cabdirisaq Cali Siciid (shaahdoon) iyo Gudoomiyaha Degmada Bosaso Xasan Cabdale Xasan Waxaana si rasmi ah Qaybta kowaad Dekedda Bosaaso loo bilaabayaa 24/January/2023.
Wasiirka of what?
No sign of the Somali Flag this time.
Also can’t find information on a company called Mar Marine or a track record of what they have built in the past.
Both Shafa Al Nahda (port & freezone) and NBHH (corridor & airport) had track records of delivering major international infra structure projects.
The 12-month project, which is expected to start in early 2023, will include the development of a 150-metre quay, as well as repairs to the current 215-metre quay. Other infrastructure will include the development of a new 3000 square metre container yard, and a 4000 square metre container stripping yard. The gate area to the port will also be upgraded to improve access control.**
Ahmed Yaasiin Saalah, Puntland’s Minister of Ports and Maritime Transport, Suhail Albanna, DP World’s CEO and Managing Director, Middle East and Africa, and Nabil Milad Abou Rjaili, General Manager of Mar Marine & Building Contracting.
“The expansion and upgrade of the Port of Bosaso is key to Puntland’s economic growth, which will benefit not just the people of the state, but also Somalia and the Horn of Africa. It will ensure the region is further integrated into the global trade ecosystem, as a bigger, more efficient port with the ability to receive container vessels, will facilitate increased trade.”
Ahmed Yaasiin Saalah, Puntland’s Minister of Ports and Maritime Transport
DP World and Somalia’s Government of Puntland, today signed a construction agreement for expansion and upgrade work at the Port of Bosaso.
The agreement was signed in Dubai today by Ahmed Yaasiin Saalah, Puntland’s Minister of Ports and Maritime Transport, and Suhail Albanna, DP World’s CEO and Managing Director, Middle East and Africa, in the presence of Abdurazak Ali Seid, Governor of the Bari region, Hassan Abdalle Buhe, Mayor of Bosaso, Dr. Abdifatah nour Ahmed, State minister of information and communication- Puntland state of Somalia, Ali Omar Arshe, Deputy Minister revenue of Finance, Jama Salad Mohamoud, Puntland chamber of commerce and Hassan Abdullahi, representative of the office of Puntland’s President.
The 12-month project, which is expected to start in early 2023, will include the development of a 150-metre quay, as well as repairs to the current 215-metre quay. Other infrastructure will include the development of a new 3000 square metre container yard, and a 4000 square metre container stripping yard. The gate area to the port will also be upgraded to improve access control.
Once complete, the port will be able to handle container vessels and attract more direct calls from feeder ships from Dubai and other regional hubs. It will also become an important hub for dhow transport serving the Somali coast.
Ahmed Yaasiin Saalah, Minister of Ports and Maritime Transport, said: “The expansion and upgrade of the Port of Bosaso is key to Puntland’s economic growth, which will benefit not just the people of the state, but also Somalia and the Horn of Africa. It will ensure the region is further integrated into the global trade ecosystem, as a bigger, more efficient port with the ability to receive container vessels, will facilitate increased trade.”
Suhail Al Banna, CEO and Managing Director, Middle East and Africa, said: “DP World has a lot of experience in the development and operation of ports and terminals, not just around the world, but also in Africa. We will bring all our expertise and capability to the project, to support the Government’s vision for the port as an enabler for economic growth. I would like to thank the Government of Puntland for partnering with us on this exciting project.”
They seem to be tipping their toes in the water after the shooting of their last manager. Also Garacad was not part of the original plan when they agreed to pump in 300 something million a few years ago, from this it doesn’t even look like 50 million will be spent. This looks like a containment project. No mention of serving Ethiopia market, basically the market will be Somalia, mainly fed by Dhows as it is now and a few container feeder vessels. Not even a mention of mobile harbour cranes being provided. That’s not to say they won’t invest more in the future but 1 year build time does not show a lot of confidence.
No mention of the depth of the port which is one of the most important aspects.
It seems DP world a solid contract and are doing just enough to fulfil their side of it. Puntland with the security failures in Bosaso and building a competitor port has probably breached it’s side of the contract and is now stuck in limbo and has no choice but to accept whatever is thrown at them.
No mention about the number of years that DP World is going to manage and what the split in ownership looks like. My bet is that, DP World owns 100% and has at least 50 years lease. We will see the ownership details in the next few Yearly Updates to the market by DP World.
Anywya, I i think this is a huge win for Berbera Port. As Bosaso Port will be now fully under lock-stock-& barrel of the DP World Supply Chain which Berbera Port is the main distribution port in the Horn.
Why does it feel like this story is all made up, what potential is there in Garacad for DP World?
- Posted On 23-12-2022, 10:05AM
GAROWE, (GO) - Iconic freight heavyweight DP World is now eyeing massive investments in the federal republic of Somalia after failing to stamp authority in Djibouti, where it had received a mega contract for the Doraleh Container Terminal in 2018, which was described as life-changing for the Horn of Africa region.
About seven years ago, Somaliland signed a 30-year contract to develop the historical port of Berbera along the Gulf of Eden which was to cost around $442 million. In the contract, DP World was to own a 51 percent stake after the deal is completed, something which would take some time before their exit.
Equally, Somaliland and landlocked Ethiopia were to own 30% and 19% stakes respectively. But in 2017, P&O, a subsidiary of DP World, signed a 30-year concession to manage and develop a project at Bosaso in the Puntland State of Somalia.
The $330 million deal has not yet been implemented, causing political ripples in the northern state of Somalia.
Bosaso lies on the Gulf of Aden. Now, DP World eyes investment in Africa’s first community-built Gara’ad port which was inaugurated in September this year.
The Construction of the Gara’ad port project envisages to be a marine gateway that connects Central Somali and Eastern Ethiopia, experts note. The community-owned port is believed to be instrumental in shaping the economy of both Somalia and Ethiopia, a landlocked country that has been using the Port of Djibouti.
The President of Puntland Said Abdullahi Deni, acting on UAE demand went to the town of Gara’ad this week to convince the local people to give free zone land to the DP World company. Sources tell Garowe Online that the people rejected the President of Puntland’s request.
This port is community funded and the local people are afraid that the DP world will prevent other funding from other rival countries. Members of the community told Garowe Online that they asked the president of Puntland that they will not give land to DP World and enter a deal with it as the company failed in fulfilling the Bosaso port contract.
DP World wants to control all Somalia ports as it faces competition from Qatar, Turkey, and China. The company which manages Berbera and Bosaso ports is now moving to take over Kismayo port in the Jubaland state of Somalia. The strategy is believed to be benefiting a few people in society at the expense of people.
Critics believe that DP World, which gives a lot of money to the Somali leaders for the Bosaso port agreement, is preventing other companies from entering deals with the Puntland government because they have spent a lot of money. Berbera port and Bosaso are located in the Red Sea.
Said Abdullahi Deni is now pushing for the extension of his term, leading to discomfort from a number of politicians in Puntland who accuse him of dictatorial tendencies. His association with DP World is set to trigger a fresh storm that would effectively challenge the stability of the region.