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DP World and Somaliland Government open Berbera Economic Zone

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DP World and Somaliland Government open Berbera Economic Zone. Image: DP World
DP World and Somaliland Government open Berbera Economic Zone. Image: DP World
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DP World and the Government of Somaliland have inaugurated the new Berbera Economic Zone, which along with the Port of Berbera, is transforming the area into a major trade hub in the Horn of Africa.

The first phase of the BEZ was officially opened by His Excellency Muse Bihi Abdi, President of Somaliland, and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, at a special event attended by several hundred guests. These included representatives from DP World’s investment partner in the port and zone, British International Investment (BII), the UK’s Development Finance Institution (DFI) and impact investor.

The opening followed the inauguration of the new container terminal at Berbera Port in June 2021. DP World’s vision for Berbera is to develop it into a trade hub, taking advantage of its strategic location along one of the busiest sea routes in the world and access to the vast hinterland in the region, including Ethiopia.

The BEZ is located just 15 km from the port along the Berbera to Wajaale road (Berbera Corridor) that connects to Addis Ababa in Ethiopia, which needs multiple sea gateways to meet its trade requirements.

This integrated maritime, logistics and industrial hub will serve the Horn of Africa, a dynamic region with a population of more than 140 million people.

It is based on the highly successful model of DP World’s Jebel Ali Free Zone (Jafza) in Dubai. There will also be synergies between the two zones, where companies in Dubai can register for Berbera through the Jafza one-stop shop, while companies in Berbera can access Jafza’s incubation centre facilities.

The zone is designed to create a business-friendly environment to attract investment and create jobs for Somaliland. It includes a competitive and conducive environment, enabled by a new Special Economic Zone Law, Special Economic Zone Companies Law, fiscal and non-fiscal incentives, along with a one-stop shop for all registration and licensing requirements, modern offices, warehousing and serviced land plots.

DP World has already signed an agreement with IFFCO, a major UAE-based food company, to develop a 300,000 square feet edible oil packing plant in the BEZ and a dozen more companies operating across various sectors have already registered.

Speaking at the event, His Excellency Muse Bihi Abdi, President of Somaliland, said: “This is another proud and historic moment for Somaliland and its people. After the inauguration of the container terminal at Berbera Port, and now with the economic zone open for business, we are taking a major leap forward in realising our vision to establish Berbera as an integrated, regional trade gateway, which will be a key driver of economic growth, achieved through increased trade flows, foreign investment and job creation.”

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “The dynamics of global trade are changing, and there is a growing need for trade infrastructure, such as economic zones, with easy and fast access to international shipping. These will bring companies closer to their customers, improve their logistics and allow them to expand into new markets. The integration of Berbera port with the new Economic Zone is a great example of this, making Berbera a world-class trading ecosystem, now and for the future.”

Liz Lloyd, Chief Impact Officer of British International Investment, added: “We are very proud to be part of this important milestone to inaugurate the Berbera Economic Zone, which will provide a vital economic boost to Somaliland and support growth in the broader Horn of Africa region. The overall expansion of the port is expected to improve the quality of life and livelihoods for over a million Somalilanders, increasing the availability and affordability of goods and indirectly supporting over 53,000 jobs locally.”

The Master Plan for the BEZ covers more than 1,200 hectares and will be expanded over time as demand grows. With phase one now open, it offers serviced land plots for the construction of company facilities, 10,000 square metres of pre-built warehouses, build-to-suit facilities, open yard storage, a common user warehouse which DP World will operate to handle customers’ cargo, as well as office space with end-to-end IT services.

The Berbera Port is a multipurpose port with world-class infrastructure, including extensive bulk and breakbulk handling facilities, liquid cargo handling capability and a state-of-the-art container terminal. It has a deep draft of 17 metre, a quay of 400 metre and three ship-to-shore (STS) gantry cranes, which can receive the largest container vessels in operation today. It also has the capacity to handle 500,000 twenty-foot equivalent units (TEUs) a year. The terminal also includes a modern container yard with eight rubber tyred gantry cranes (RTGs) and a one-stop service centre.

The Berbera Port is a cornerstone of the economy. As a result of the expansion, it is expected to facilitate trade equivalent to approximately 27% of Somaliland’s GDP and 75% of regional trade by 2035. The BEZ will make trade easier for businesses in Somaliland and also the wider Horn of Africa. This will benefit a variety of sectors including exporters, importers and processors of livestock, agricultural and perishable goods, textiles and construction materials.

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Maritime

Wartsila to supply Cargo Handling and Fuel Gas Supply systems

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Wartsila to supply Cargo Handling and Fuel Gas Supply systems. Image: Wartsila
Wartsila to supply Cargo Handling and Fuel Gas Supply systems. Image: Wartsila
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Technology group Wartsila has again been contracted by the Hyundai Heavy Industries shipyard to supply the Cargo Handling and integrated Fuel Gas Supply systems for Very Large Ethane Carrier vessels. This latest order, booked by Wartsila in Q1, 2023, is for two VLECs being built for Japanese ship owner Iino Line.

It follows a series of ongoing deliveries of similar newbuild VLEC vessels at HHI. Wartsila has had a long-standing relationship with HHI, especially regarding a wide range of gas related products and systems for various types and sizes gas carriers

“We have great respect for Wartsila as a provider of high-quality cargo handling and fuel gas supply systems, which are essential elements in the design of these ships. In today’s maritime market, close cooperation with trusted partners is increasingly important for ensuring that projects are completed in the most efficient way possible,” said Mr. Sangryul Kim, Vice President, Hyundai Heavy Industries.

“It is satisfying to be awarded the order, and we are grateful for the trust shown in our products by HHI. This latest order further strengthens Wartsila’s position as a market leader in cargo handling and fuel supply systems, and notably for large sized ethane carriers. These are advanced and very specialised vessels requiring advanced and specialised solutions, which we are proud to deliver,” commented Harald Øverland, Sales Manager, Cargo Handling and Fuel Supply Systems, Wartsila Gas Solutions.

The Wartsila equipment is scheduled for delivery to the yard in mid-2024.

Wartsila Gas Solutions is a market leader with innovative systems and lifecycle solutions for the gas value chain. Our main focus areas are handling of gas in seaborne transport (storage, fuel, transfer and BOG management), gas to power, liquefaction and biogas solutions. We help our customers on the journey towards a sustainable future through focus on lifecycle, innovation and digitalisation.

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Maritime

AD Ports to use Vessel Traffic Management Information System

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AD Ports to use Vessel Traffic Management Information System. Image: AD Ports
AD Ports to use Vessel Traffic Management Information System. Image: AD Ports
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AD Ports Group is to implement a state-of-the-art Vessel Traffic Management Information System across its UAE operations, as the company continues to invest in innovative solutions to drive safety, security and efficiency. The new technology is set to be installed across Khalifa Port, Zayed Port, Free Port, Musaffah Port, and Al Dhafra region ports.

The investment marks the latest move by AD Ports Group to deploy advanced digital solutions within the UAE in support of the nation’s efforts to develop a world-class maritime and ports sector.

The implementation of an advanced and fully integrated VTMIS is a vital requirement in developing an enhanced Ports Community System (PCS) and ensuring the Safety of Life at Sea (SOLAS). The system is used to ensure the integration and interconnection of all assets in a port and maritime environment, integrating tools such as radar, CCTV, radios, meteorological systems, radio direction finders and towers. This provides port operators with access to real-time information and improves vessel-to-vessel and vessel-to-shore communication.

Captain Ammar Al Shaiba, Acting CEO – Maritime Cluster and Safeen Group, AD Ports Group said: “AD Ports Group has made this investment in a state-of-the-art Vessel Traffic Management Information System (VTMIS) to maximise the safety, security and efficiency of our port and maritime operations. This demonstrates our drive to improve quality and safety in accordance with the highest international standards, and assists our marine services team in making smart, rapid decisions informed by real-time information.”

This advanced level of transparency and communication can support safe and secure management of maritime operations, by supporting functions such as traffic management systems including collision avoidance and safe navigation, search and rescue, oil pollution detection and environmental protection.

To support the implementation of the new system, AD Ports Group intends to advance and upgrade the current VTC Centre with video walls and operator consoles, to provide a comprehensive view of tracked vessels within the VTMIS area.

Once implemented, the new technology will support safe and efficient navigation, enhancing AD Ports Group ability to remotely monitor shipping from the command centre at Khalifa Port, in locations as far as 300km away.

 

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Environment

Jeddah Islamic Port boosts decarbonization drive

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Jeddah Islamic Port boosts decarbonization drive. Image: Pixabay
Jeddah Islamic Port boosts decarbonization drive. Image: Pixabay
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The Saudi Ports Authority has announced cutbacks in crane activity and truck turnaround times at Jeddah Islamic Port in line with its annual target of lowering carbon footprint at the Kingdom’s busiest port by 1,046 tons in 2023.

Complementing the goals of the National Transport and Logistics Strategy (NTLS), the Jeddah port’s decarbonization efforts form part of Mawani’s Green Ports initiative that seeks to slash energy consumption by 15% through equipment electrification and diesel phaseout across the Kingdom’s trade hubs.

Through a 33% decrease in average yard crane moves for every imported container that requires manual inspection as well as a 17% reduction in truck turnaround times, the port further solidifies its standing as a cost-competitive and operationally-efficient logistics destination at the crossroads of East-West trade.

The national maritime regulator’s environmental strategies are inspired by the Saudi Green Initiative, a national climate action plan that aims to unite the Kingdom’s push towards ecological protection, energy transition, and emissions reductions through a joint collaborative approach between the public and private sectors.

The Red Sea based hub had recently bagged the Port of The Year award at the Green Shipping Summit 2023 that was held in Rotterdam, The Netherlands for its successful track record in harnessing innovative and sustainable technologies and solutions for a greener tomorrow.

Mawani has been keen on transforming the Saudi ports into investment platforms and facilitating the Kingdom’s trade with the rest of the world. The Authority seeks to achieve an effective regulatory and commercial environment supported by an operating model that enables growth and innovation in the Kingdom’s maritime industry.

It also envisions developing a sustainable and prosperous ports sector to consolidate the Kingdom’s position as a leading global logistics hub. Mawani strives to realize Saudi Arabia’s economic and social ambitions by ensuring reliable and efficient logistics operations, as well as creating a safe and sustainable maritime environment.

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