๐๐ฃ๐ซ๐๐จ๐ฉ๐ข๐๐ฃ๐ฉ ๐๐ฃ ๐ฉ๐๐ ๐๐ญ๐ฅ๐๐ฃ๐จ๐๐ค๐ฃ ๐ค๐ ๐ฝ๐๐ง๐๐๐ง๐ ๐๐ค๐ง๐ฉ ๐๐จ ๐๐๐ก๐๐ซ๐๐ง๐๐ฃ๐ ๐ฉ๐๐ฃ๐๐๐๐ก๐ ๐๐๐ค๐ฃ๐ค๐ข๐๐, ๐ฉ๐ง๐๐๐ ๐๐ฃ๐ ๐๐ฃ๐ซ๐๐ง๐ค๐ฃ๐ข๐๐ฃ๐ฉ๐๐ก ๐๐๐ฃ๐๐๐๐ฉ๐จ ๐๐ค๐ง ๐๐ค๐ข๐๐ก๐๐ก๐๐ฃ๐, ๐จ๐ฉ๐ง๐๐ฃ๐๐ฉ๐๐๐ฃ๐๐ฃ๐ ๐ฉ๐๐ ๐ฉ๐๐ง๐ง๐๐ฉ๐ค๐ง๐ฎโ๐จ ๐ง๐ค๐ก๐ ๐๐จ ๐ ๐ง๐๐๐๐ค๐ฃ๐๐ก ๐ก๐ค๐๐๐จ๐ฉ๐๐๐จ ๐๐๐ฉ๐๐ฌ๐๐ฎ ๐๐ฃ๐ ๐ง๐๐๐ช๐๐๐ฃ๐ ๐๐ค๐จ๐ฉ๐จ ๐๐ค๐ง ๐๐ช๐จ๐๐ฃ๐๐จ๐จ๐๐จ ๐๐๐ง๐ค๐จ๐จ ๐ฉ๐๐ ๐๐ค๐ง๐ฃ ๐ค๐ ๐ผ๐๐ง๐๐๐, ๐๐๐๐ค๐ง๐๐๐ฃ๐ ๐ฉ๐ค ๐ ๐ฃ๐๐ฌ ๐๐ฃ๐๐๐ฅ๐๐ฃ๐๐๐ฃ๐ฉ ๐๐ซ๐๐ก๐ช๐๐ฉ๐๐ค๐ฃ
The assessment, commissioned by British International Investment (BII) and conducted by Itad and Steward Redqueen, examines the impact of a multi-year modernisation of Berbera Port led by DP World in partnership with the Government of Somaliland.
British International Investment joined the project as a minority investor in early 2022 through its Africa Gateway partnership with DP World.
Located on the Gulf of Aden, Berbera occupies a strategic position along one of the worldโs busiest shipping lanes and has long been viewed as a potential alternative trade corridor for landlocked Ethiopia. The evaluation finds that targeted investment in port infrastructure has significantly upgraded Berberaโs capacity and performance, enabling it to compete more effectively with established regional ports.
Berbera expansion overview
Source: Itad and Steward Redqueen study
Container handling capacity at Berbera has more than tripled, increasing from 150,000 to 500,000 twenty-foot equivalent units (TEUs). This expansion has been supported by new quay infrastructure, deeper draught and modern cargo-handling equipment, allowing the port to accommodate larger vessels and higher volumes of traffic.
Operational efficiency has also improved sharply. Average vessel turnaround times fell from 64 hours in 2018 to around 25 hours in 2024, a reduction that has helped lower costs for shipping lines and cargo owners. According to the report, these improvements have repositioned Berbera as a credible regional competitor and contributed to rising container traffic through the port.
As a result, Berberaโs share of regional container trade has increased steadily, reaching 14% in 2024, up from 9% in 2017. Modelling cited in the evaluation suggests the port now offers cost-competitive access to parts of eastern Ethiopia and Somaliland that were previously underserved, particularly areas beyond the Addis AbabaโDjibouti transport corridor.
Increase in port efficiency as measured by operational KPIs
Source: Itad and Steward Redqueen study
Business and societal impact
The efficiency gains are translating into meaningful savings for businesses. Transport cost reductions for importers and exporters using Berbera were estimated at $8.4 million in 2024, or $6.9 million after adjusting for new users attracted by the expanded port. Environmental benefits have also emerged, with improved logistics and shorter vessel waiting times cutting carbon emissions by an estimated 7,651 tonnes a year.
Beyond trade flows, the evaluation highlights a material contribution to Somalilandโs economy. In 2024, the upgraded port and the adjacent Berbera Economic Zone supported around 2,490 jobs and added $45.1 million in value to the economy. Of this, 921 jobs and $16.7 million in economic output were directly attributable to the port expansion, equivalent to roughly 0.4% of Somalilandโs gross domestic product.
Container throughput (TEU) at Berbera Port and share of ports in the region
Source: Itad, National statistics for respective countries, Rebel analysis
More to come
The study notes that the full impact of the investment has yet to be realised, with current trade volumes not yet requiring the portโs full capacity. External factors, including disruptions linked to the Red Sea crisis, have also affected shipping patterns.
In addition, some benefits โ such as the impact of cheaper imports on living standards and wider spillovers into neighbouring Ethiopia โ are not fully captured in the analysis.
Nonetheless, the evaluation concludes that well-structured infrastructure investment in underserved frontier markets, when combined with experienced global operators and complementary logistics ecosystems, can unlock substantial trade, economic and environmental gains.
