DP World is considering setting up a logistics facility in landlocked Ethiopia to handle goods from a port it is developing in the semi-autonomous region of Somaliland, according to United Arab Emirates (UAE) state news agency WAM.
About 95 percent of Ethiopia’s inbound trade is handled by Djibouti which neighbours both Ethiopia and Somaliland.
The Ethiopian facility would receive and transport goods to other landlocked African countries, WAM quoted DP World Chairman Sultan Ahmed bin Sulayem in a June 30 report which did not provide further details.
Dubai-owned DP World, one of the world’s biggest port operators, did not immediately respond to a request for comment.
Ethiopia’s port deals
DP World, the government of Ethiopia, and the government of Somaliland, partnered this year to develop the Port of Berbera on Africa’s east coast.
The UAE is building a highway connecting the port to the Ethiopian border as part of other commitments to invest in Somaliland infrastructure.
Somaliland broke away from Somalia in 1991 but has not gained international recognition and has acted as a de-facto state since then.
Ethiopia is separately partnering with Djibouti and neighbouring Somalia to develop ports in their countries.
DP World launched legal proceedings against the government of Djibouti earlier this year after the government abruptly ended its contract to operate Dorelah port.