Berbera Port Serves Land-locked Ethiopia and Somaliland

Nairobi October 30, 2005 (Berger World) - Somaliland faces the considerable challenge of having to establish a central administration and a diversified economy in a predominantly pastoralist territory. Key to this will be the fortunes of Berbera port.   Berbera is not only a key regional corridor, but is also Somaliland 's single biggest income generator. Exports from Berbera support farmers and herders in Somaliland , as well as those in the self-declared autonomous region of Puntland, northeastern Somalia . Livestock also reaches Berbera from southeastern Ethiopia and southern Somalia . With the imposition of the recent embargo, the lives of hundreds of thousands of pastoralists and traders have been adversely affected.  

In northern and central regions   (including Somaliland and Puntland) huge income losses have resulted from the Gulf livestock import ban, placing enormous strains on household budgets, warned the multi-agency Food Security Assessment United (FSAU) in its February report. Local currency has lost value, and there has been a dramatic drop in the amount of hard currency brought into the region. Imported and local cereal prices have risen steeply, and purchasing power has dropped.  

For traders, pastoralists and farmers in the Horn of Africa, the port of Berbera is one of the main gates to foreign markets and a key to future development. The port currently serves both land-locked Ethiopia and Somaliland and has the potential to become a regional trade hub. This could, in turn, make the Addis Ababa-Hargeisa-Berbera transport corridor a major catalyst for trade and economic development. To support these objectives, the EU selected Louis Berger SAS and Afro-Consult to assess the feasibility of upgrading the port and transportation links supporting it, including the Berbera Corridor Highway , the Berbera and Hargeisa Airports and the Ethiopia-Somaliland border crossing facilities.

The Team assessed the condition of the road links between Berbera and Addis Ababa , the Berbera port facilities, the Hargeisa and Berbera Airports and established current and future demand. Although current demand along the corridor is relatively low, the consultants anticipated that reconstruction of the area and the growing export of livestock will encourage increased traffic. The Team also compared the costs and advantages of Ethiopia using the port of Berbera with those of competing ports, including Djibouti , Assab, Massawa, Mombassa and Port Sudan .

Berger team members established that the development of the port of Berbera is the key to improved regional trade links. Port specialists analyzed the current depth and capacity for each of the existing quays and considered a number of proposals for improving the port, including the expansion of existing quays and yards to provide increased capacity, the development of the "American Quay" to accommodate large ships and the rehabilitation of the oil jetty. In addition, the Team recommended the preparation of a port master plan to ensure that all future developments are carefully integrated. Once the demand studies were completed, specialists prepared recommendations for the improvement of the corridor transportation networks, including upgrading the Harar-Jijiga and Jijiga-Togochale roadways in Ethiopia and bridging several wadis, or flood channels.

To improve air travel and cargo shipment, the Team evaluated the two principal airports in Somaliland-Hargeisa and Berbera. Increasingly, air freight carriers in the Middle East and Africa are switching from propeller aircraft to jets. This requires the modernization of the runways, aprons and taxiways at both airports. To reduce costs, the Team recommended that the improvements be included with a proposed € 32 million contract to resurface the roads in the corridor.

The improvement of this international trade route provides significant potential for increased revenues in both Somaliland and Ethiopia . To foster and monitor this trade, Berger also evaluated the current capacity of the customs system and prepared recommendations to reduce smuggling between Ethiopia and Somaliland and streamline customs procedures. Among the recommendations, Team members suggested the revision of tariffs to meet recent changes in the market value of goods and the use of pre-shipment inspections for higher valued items. The Team then assisted customs officials in establishing separate procedures for goods in transit and drafted improved enforcement regulations.

The Berger Group also worked in Ethiopia to improve rail connections with Djibouti . Along with Hifab International and Swederail, Berger evaluated the current demand and revenues of the Chemin de Fer Djibouti -Ethiopian railroad which connects Addis Ababa and Djibouti and identified programs to increase use of the railroad through a private concession and an improved operations and marketing plan.

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