New Terminal for Edible Oil Planned at Port of Berbera

April 19, 2023

(Photo: DP World)
(Photo: DP World)

DP World has kicked off the development of a new edible oil terminal at the Port of Berbera in Somaliland. It has already agreed to a long-term lease for the facility.

The edible oil terminal will be the latest addition to Berbera’s growing trade ecosystem, following the recent opening of the Berbera Economic Zone (BEZ), 15 kilometers from the port along the Berbera to Wajaale road (Berbera Corridor) that connects to Addis Ababa in Ethiopia.

DP World said it plans to transform Berbera, which sits alongside one of the world’s busiest sea routes, into an integrated maritime, logistics and industrial trade hub to serve the Horn of Africa, a region with a population of more than 140 million people.

The terminal will initially have a storage capacity of 18,000 tonnes, which will be expanded as demand grows. It will be able to service vessels with a draft of up to 16 meters, allowing Berbera Port to handle bulk imports of edible oil for the first time. The ability to import oil in bulk and package it locally will make edible oil more affordable for people in the region and create jobs locally.

The initial phase of the terminal is already fully leased on a long-term basis to Mzahim Investment LLC, a subsidiary of Essa Al Ghurair Investments (EGI) of the United Arab Emirates. Mzahim Investment will also develop a local packaging plant in Berbera to supply existing customers in Somaliland and the wider Horn of Africa, which could employ up to 100 people.

Suhail Albanna, CEO and Managing Director of DP World Middle East and Africa, said, “Our development of the edible oil terminal is a game changer for the region and is another example of how we are reducing the cost to trade by finding solutions that meet the needs of our customers, while having a positive impact on local communities in terms of job creation and easier access to goods. As part of the Berbera port and economic zone ecosystem, this facility is the type of integrated port infrastructure that attracts international investors such as EGI looking to get closer to their customers.”

Essa Abdulla Al Ghurair, Chairman of Essa Al Ghurair Investments, said, “As a UAE-based family business, we have traded with the region for nearly 40 years. Having a facility in Berbera will continue to strengthen our business ties with the region. The presence of DP World played a significant role towards encouraging businesses like ours to invest in the region. The Berbera edible oil facility will allow us to manufacture locally, ensuring essential commodities such as edible oil are affordable and freshly available to the locals. Through manufacturing, we can play a role in creating employment and nurturing talent, especially in the skilled and semi-skilled workforce.”

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