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P&O Ports inks concession to develop $336m port in Somalia

P&O Ports inks concession to develop $336m port in Somalia
P&O Ports has signed a 30-year concession for the management and development of a multi-purpose port project at Bosasso in the Puntland State of Somalia. 

A total of $336m will be invested, divided into two phases: $136m for the first phase and $200m for phase two. The port wil be located in Puntland an autonomous state within Somalia, which has been wracked civil conflict since the early 1990's.

President of Puntland, H.E. Abdiweli Mohamed Ali and the chairman of Ports, Customs & Freezone Corporation (PCFC), Sultan Ahmed bin Sulayem signed the agreement at a ceremony in Dubai in the presence of senior Government officials and representatives of PCFC.

Work on the project will involve building a 450m quay and a five hectare back up area, dredging to a depth of 12m with reclamation work using dredge spoil.

There will also be major investment in an IT and terminal operating system, mobile harbour cranes and container handling equipment.

President of Puntland, H.E. Abdiweli Mohamed Ali, said: “Infrastructure development is a priority for the government of Puntland as it underpins the efforts of taking this country forward. This concession agreement of expanding the Bosasso port is a major achievement for my government and for the people of Puntland

PCFC chairman, Sultan Ahmed Bin Sulayem, said: “The Port of Bosaso is a unique opportunity to enter into a multi-purpose port that is transitioning to containerisation in a country that is growing strongly as it enters a period of sustained peace. 

“It fits ideally into P&O Port’s mandate to invest in multipurpose ports in emerging markets, employing local people and developing skills. In return, the state of Puntland will benefit from an internationally recognised port operator contributing to its economic growth and trade potential”.

The Port of Bosaso is located in Puntland State of Somalia, 2,000 km north of Mogadishu. 

The deal comes as Somalia is struggling to get to grips with a number of new piracy attacks causing concerns in the shipping industry of a resurgence in the scourge which reached critical levels between 2008 and 2012.  Three hijackings have taken place in the last month. 

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