DP World (DPW.DI) won a 30-year concession, with an automatic 10-year extension, for the management and development of a multi-purpose port project at Berbera, Republic of Somaliland, which will complement DP World’s existing port at Djibouti. DP World will set up a joint venture with 65% control together with the government of Somaliland to manage and invest in the Port of Berbera, where investments could rise to USD442mn. The investment will include a first phase of a 400 metre quay and 250,000 sq metre yard extension, and gantry cranes and reach stackers to handle containers and cargo. Construction of the quay extension will take 24 months to complete and is expected to start 12 months after the satisfaction of the terms and conditions of the agreement. The earmarked investments will be phased over time and will be dependent on port volumes. Port of Berbera will complement DP World’s network in East Africa by creating a new deep-water gateway for Somaliland’s and East Africa’s global trade, where DP World can capitalise on the world-class deep sea port infrastructure and services which currently has no shore cranes and also benefit from a long-term expansion potential with a concession area of 4.25sq km and over 11sq km of additional available land for a potential free zone. (Company Disclosure)   DP World (DU): AED18.51 as of 5 September, Rating: Buy, FV: AED22.00 per share, MCap: USD15,363 Mn, DPW DU / DPW.DI