DP World launches shipping corridor between Dubai and Somaliland

Jebel Ali Port. Photo credit: DP World

UAE-based logistics company DP World has launched a new shipping route linking Dubai’s Jebel Ali Port with Berbera Port in the self-proclaimed state of Somaliland. The service comes as both DP World and Somaliland look to boost trade links with neighbouring Ethiopia to maximise Berbera Port’s potential.

DP World owns a majority stake in, and operates, the container terminal at Berbera. Since the company began operations there in 2017, the port has undergone a major transformation. Berbera is viewed as a strategic asset because of its location on the Gulf of Aden near the Bab al-Mandab Strait, a channel through which about 12% of global trade passes. The terminal now has capacity for 500,000 twenty-foot containers a year, with a planned second phase set to raise this to 2m. More than 4.1m heads of livestock move through Berbera each year to global markets, a trade valued at more than US$1bn. DP World has also developed the nearby Berbera Special Economic Zone.

The new shipping service, operating every nine days, is expected to strengthen trade links between the Gulf and East Africa. From Berbera, cargo can move onwards to inland destinations such as Ethiopia. 

A pier in Berbera. Photo courtesy: Amit Jain

The fortunes of Berbera Port are closely tied to expanding trade with Ethiopia, a landlocked country of more than 130 million people that relies on Djibouti for almost all its international commerce. Back in 2021, DP World signed a memorandum of understanding with Ethiopia’s Ministry of Transport aimed at developing the Ethiopian side of the road linking Addis Ababa to Berbera into a major trade and logistics corridor. At the time, the company envisaged significant investment in supply-chain infrastructure along the route, including dry ports, silos, warehouses, container yards, cool and cold-chain depots, as well as freight-forwarding and clearing services.

Last month, Somaliland’s new president, Abdirahman Mohamed Abdullahi – known as Irro – travelled to Ethiopia for the first time. A key item on the agenda was advancing the long-awaited trade and transit agreement with Ethiopia, a deal DP World has been keen to see finalised.

The trade agreement has been stalled since January 2024, when a controversial memorandum of understanding (MoU) was signed between Irro’s predecessor, Muse Bihi, and Ethiopian prime minister Abiy Ahmed. The MoU proposed granting Ethiopia access to 20km of Somaliland’s coastline to establish a commercial maritime facility and naval base, in exchange for recognising Somaliland’s sovereignty. This inflamed tensions with Somalia’s federal government, which continues to claim Somaliland as part of its territory. A compromise agreement brokered by Turkey has since been reached between Ethiopia and Somalia, although the terms have not been disclosed.

Although the MoU now appears to have been put on hold, Somaliland and Ethiopia are reportedly moving closer to a trade agreement that would support greater volumes of commerce between Berbera and Ethiopia. The deal is expected to set out the customs regime for goods passing through the border, and to spell out technical provisions on issues such as insurance and authorisations for truck movements. Somaliland is also reported to be seeking a deal to export gas from the Ogaden LNG project through the port of Berbera.

 

References

'Ministry of Transport of Ethiopia and DP World sign MOU for the development of the Ethiopian side of the Berbera Corridor', DP World, 06 May 2021

'The Battle for Berbera: Inside the global scramble for Somaliland’s strategic Red Sea port', The Africa Report, 07 April 2025

'DP World launches new Jebel Ali - Berbera Shipping Route', Government of Dubai Media Office, 16 October 2025

'In Berbera, DP World awaits green light from Addis Ababa to go ahead with expansion plans', Africa Intelligence, 17 October 2025

'Somaliland, Ethiopia rekindle ties after rocky port-for-support saga', The Africa Report, 20 October 2025

'Ethiopia’s maritime bet: From strategic vision to diplomatic hesitation on MoU with Somaliland', Addis Standard, 12 November 202