DC World, Djibouti Ink Automotive Free Zone Deal

DUBAI, July 06, 2007 – Dubai Customs World (DC World), a global customs solutions provider and subsidiary of Dubai World, yesterday signed an agreement with the government of Djibouti to invest and manage an automobile and heavy equipment free zone in that East African country.

"We will invest in this project and manage it," said Hamad Mohammed Fadhel Al Mazrooei, CEO of DC World. He refused to give details on the investment pending the finalization of the whole project, saying that "we want to finalize it" within this year. He signed the agreement with Ali Farah Assoweh, Minister of Finance, Republic of Djibouti, who said that the deal followed two years of negotiations between the two parties. He added that the agreement could be renewed after 10 years.

Idriss Ahmed Chirwa, Djibouti's Ambassador to the UAE, said his government provided the land for the project, called Djibouti Automobiles and Heavy Equipment Zone (DAHEZ), located 12 kilometers from the city of Djibouti.

"This is a strategic move that will further strengthen the modernization process that is changing the face of Djibouti," Assoweh said in a prepared statement. "Our aim is to make DAHEZ a regional hub for automobiles and heavy equipment trade and services."

Djibouti 's modern port and sophisticated customs point has been the favorite transit route for goods headed to East and Central Africa. And the DC World project will support Djibouti's role as the commercial gateway to the East African hinterland.

"We strongly believe that the automotive zone is a vital infrastructure link in the supply chain network the Government of Djibouti has been putting together with vision and commitment for the past six years," Mazrooei said. "DC World is absolutely determined to ensure the success of this long-term investment."

Officials said the proposed automotive zone, set to provide services such as customs operations and warehousing, would be a hub for thousands of heavy vehicles that pass through Djibouti every day transporting cargoes from the country's ports to neighboring Ethiopia.

They added that the traffic of goods and services in the area would increase significantly once the Common Market for South and East Asia (COMESA), a free trade area agreement that includes Djibouti, will have been implemented in the coming years. Measuring 570,000 square meters, the zone will also provide such services as customs operations, automobile repair, vehicle auctioning and sales of accessories, leasing, insurance, registration, banking, shipping and food retailing.

DC World has been successfully managing the services at the Customs Department of Djibouti. Its mother company Dubai World manages and services the portfolio of businesses and projects for the Dubai government.

Source: Khaleej Times