DP World starts work on edible oil terminal in Somaliland

Dubai-based port operator DP World has started the development of a new edible oil terminal at the Port of Berbera in Somaliland to reduce supply chain costs and create local jobs. 

A long-term lease for the facility has been signed, DP World said in a statement. 

Edible or cooking oil is fat of plant, animal or microbial origin, which is liquid at room temperature and is suitable for food use.

The new oil terminal will be the latest addition to Berbera’s growing trade ecosystem, following the recent opening of the Berbera Economic Zone (BEZ), which connects to Addis Ababa in Ethiopia. 

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 draught of up to 16 metres, allowing Berbera Port to handle bulk imports of edible oil for the first time.  

The project cost and completion timelines were not disclosed.

The initial phase of the terminal is already fully leased on a long-term basis to Mzahim Investment, a subsidiary of UAE-based Essa Al Ghurair Investments. 

Mzahim Investment will also develop a local packaging plant in Berbera to supply existing customers in Somaliland and the wider Horn of Africa.

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.” 

Earlier this month DP World set up an economic zone in Somaliland as part of its plan to build a major trade hub in the Horn of Africa. The new project follows the opening in June 2021 of a container terminal at Berbera Port as DP World looks to take advantage of the city’s location along one of the busiest sea routes in the world.

The project is supported by British International Investment, the UK government’s development finance institution.