http://www.hiiraan.com/news4/2016/Apr/104879/ethiopia_set_to_use_northern_somalia_port_to_boost_its_maritime_traffic.aspx
Ethiopia set to use northern Somalia port to boost its maritime traffic
Hiiraan Online
Tuesday April 5, 2016
The deal which has been in the making for years provides Ethiopia an alternative transit hub for Ethiopia which largely relies on the Red Sea port of Djibouti which handles millions of dollars goods that are shipping the port for Ethiopia each month.
Officials in the Somaliland government told HOL that the deal which was signed last month would take effect as early as next month.
According to officials, the use of Berbera port which lies roughly 200km away from the Ethiopia border would work in favor of Somaliland which would collect millions of dollars annually from the lease of the port, a scenario which could help improve the region’s economic growth.
Somaliland which has declared a unilateral independence from the rest of Somalia in 1991 employs its own government, army and economy operates outside the influence of Somalia’s central government, however, no country has so far recognized it as an independent state.
Ethiopian government hasn’t yet commented on the development which may reduce the lease fees it has to pay Djibouto for the use of its port.
The secession of Eritrea had dealt a major blow to Ethiopia as it transformed the once coastal nation into a landlocked state, forcing it to seek foreign ports to import and export goods.
http://www.bloomberg.com/news/articles/2016-04-04/ethiopia-somaliland-sign-accord-to-boost-use-of-berbera-port
Ethiopia, Somaliland Sign Accord to Boost Use of Berbera Port
by William Davison
*Tariffs revised, committee set up as part of March 31st deal
*Ethiopia struggling to feed drought victims due to congestion
Ethiopia signed a deal to boost trade through Somaliland’s Berbera port amid congestion at a facility in neighboring Djibouti, officials said.
Tariffs have been revised and a committee established to manage joint operations as part of the agreement signed on March 31, Sharmarke Jama, an economy and trade adviser for the foreign ministry in the semi-autonomous Somali region, said on Monday.
The committee will work on the “smooth implementation of the bilateral agreement and for improved facilitation of transit trade along the corridor,” he said in an e-mailed response to questions.
Landlocked Ethiopia more than doubled its cereal imports in the last 12 moths as a drought left almost one-fifth of its population of around 100 million people needing food aid. On March 24 there were 10 ships waiting to unload 450,000 tons of wheat at Djibouti.
Ethiopia wanted 30 percent of its trade to go via Berbera by July last year, according to a five-year growth plan published in 2010.
As much as 97 percent of shipments are still going through Djibouti because of problems with the capacity and condition of Berbera’s port, the poor state of roads to Ethiopia and the lack of international recognition for Somaliland’s statehood claims, said Ethiopia’s Transport Minister Workneh Gebeyehu.
“Now we have really negotiated the issue and decided to go very fast to use Berbera port,” he said by phone. “The only thing that is left is the operational issues.”
It isn’t clear how many ships carrying Ethiopian cargo Berbera will be able to deal with, although there is a plan for coal imports to go through the port, Workneh said. Port Sudan is already receiving fertilizer for northern areas of Ethiopia, he said.
The Berbera Port Authority held discussions with U.S. Agency for International Development officials about aid imports, Jama said. The facility delivered 40,000 metric tons of wheat in February through Berbera for the UN World Food Programme to distribute to Ethiopians, according to the UN.
Somaliland’s government has shortlisted Bollore SA, P&O, which is owned by DP World, MSC Group’s Terminal Investment Ltd, and Prime Africa for a Berbera renovation project, Jama said.
http://ethsat.com/ships-loaded-with-food-aid-to-ethiopia-and-waiting-at-the-port-of-djibouti-to-be-diverted-to-the-port-of-berbera-and-sudan/
Ships loaded with food aid to Ethiopia and waiting at the port of Djibouti to be diverted to the Port of Berbera and Sudan
ESAT News
Ethiopian officials ordered ships loaded with food aid to Ethiopia waiting at the port of Djibouti to sail to the Ports of Berbera in Somaliland and Sudan as the waiting time at the Port of Djibouti has been found to be too long.
Aid agencies fear the delay in the arrival of the food aid could worsen the humanitarian situation in areas severely affected by the drought.
Ethiopian officials told local media that the port of Djibouti was backed up and a decision has been made to use the port of Berbera and port of Sudan. Ethiopia’s ministry for transportation said last week that the country had faced logistical crises and negotiations were underway to rent trucks from Sudan to transport the food to Ethiopia. The UN had also expressed concern on the shortages of trucks to carry the food once it reached the ports.
The minister of transportation, Kassahun Hailemariam said there were ships waiting for one month at the port of Djibouti, which would incur additional cost to the country.
There are over 10 ships in line at the port of Djibouti and the rest are on their way to the port of Berbera and Sudan.
Received on Tue Apr 05 2016 - 07:08:10 EDT