MoU paves way for formal discussions on potentials to develop the Berbera corridor
DP World has signed a Memorandum of Understanding (MoU) with the aim of developing the Ethiopian side of the road linking Ethiopia to Berbera into one of the major trade and logistics corridors of the Country’s international trade routes.
The MoU, which was recently signed in Addis Ababa by Dagmawit Moges, Ethiopia’s Minister of Transport, and Sultan Ahmed Bin Sulayem, Group Chairman and CEO,DP World.
In terms of the MoU, it is proposed that the Parties would establish a joint venture logistics company to perform logistic operations from origin to destination.
DP World and its partners envisage investing up to US$1bn over the next ten years in developing the supply chain infrastructure along the corridor. This will include dry ports, silos, warehouses, container yards, cool and cold chain depots, freight forwarding and clearing activities.
“Ethiopia aims to diversify its port access facilities and services to improve its trade corridor access routes; utilizing the Berbera corridor will surely have a potential to make Ethiopia a front runner in logistics operations,” commented Dagmawit Moges, Ethiopia’s Minister of Transport.
“As a leading global provider of trade and logistics solutions, we strongly believe that developing the Berbera Corridor into one of the major trade and logistics corridors will unlock huge economic benefits for Ethiopia, and support its ambitious development plans,” remarked Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.
