Bosaso, Somalia – In a move set to bolster regional trade and attract international investors, DP World’s ambitious expansion project for the Bosaso port in Somalia is expected to reach completion by the end of this year, according to a statement by Ahmed Yasin Salah, the ports minister of the semi-autonomous Puntland region.
The undertaking, financed by a subsidiary of Dubai-based DP World, aims to transform the port into a key trading hub within the Horn of Africa.
Strategically located on the Gulf of Aden, the Bosaso port has significant potential to serve as a vital trade route, facilitating the seamless flow of goods and attracting both regional and global traders.
The expansion project, with its estimated cost of $366 million, represents a significant investment in the development of critical infrastructure, which is expected to stimulate economic growth and enhance Somalia’s position in international trade.
Ahmed Yasin Salah, in expressing his optimism about the project, highlighted its potential to boost the regional economy and create new business opportunities. “Given that it’s strategically located, it’s a trading route to attract regional and international traders,” he stated.
The development of the Bosaso port is part of DP World’s broader strategy to establish a strong presence in the Horn of Africa, tapping into the region’s immense economic potential.
The Bosaso port expansion project is being implemented in two phases. The first phase, set to conclude by the end of this year, focuses on upgrading and expanding the existing infrastructure.
The aim is to enhance the port’s capacity to handle larger volumes of cargo, accommodate larger vessels, and improve overall operational efficiency. These enhancements will significantly contribute to reducing trade costs and facilitating smoother trade flows in the region.
Once the initial phase is finalized, DP World plans to commence the second phase of expansion next year. The details of this subsequent stage are yet to be disclosed, but it is expected to further augment the port’s capabilities and solidify its position as a key maritime gateway in the Horn of Africa.
DP World’s involvement in the Bosaso port dates back to 2017 when its subsidiary secured a 30-year concession to develop and manage the multi-purpose port, situated in the commercial capital of Puntland. This agreement not only emphasizes DP World’s commitment to long-term investment in Somalia but also underlines the company’s dedication to fostering economic growth and stability in the region.
Furthermore, DP World’s engagement in the Horn of Africa extends beyond the Bosaso port. The company has also secured a similar concession for the development and management of the Berbera port, located in the neighboring Somali territory of Somaliland.
As the expansion of the Bosaso port nears completion, stakeholders eagerly anticipate the positive impact it will have on regional trade and investment.
The enhanced infrastructure, coupled with DP World’s expertise in port operations, is expected to attract a broader range of businesses and stimulate economic activity in the surrounding areas.
With the project’s successful implementation, the Bosaso port has the potential to become a pivotal maritime gateway, connecting Somalia to global markets and positioning the country as a key player in international trade.