This month DP World (DPW.DI) has agreed to manage the Somaliland Port of Berbera for 30 years, which will open a new point of access to the Red Sea and gives the global ports operator an alternative hub to Djibouti in the Horn of Africa, according to a Wall Street Journal article. Under the current non-binding agreement, the foundation for a more formal deal later, the company plans to set up a joint venture (65%-owned) to manage and invest in the deep-water port. DP World valued the project at USD442mn, but said it would be a phased investment and depended on port volumes. The term sheet calls for DP World to pay USD5mn annually in addition to 10% on port revenue to Somaliland. This landmark deal will develop  access to the sea for landlocked Ethiopia, the region’s largest economy, which until now solely relies on the Port of Djibouti for exports. Also, a free-trade zone was also planned to support the development of trade through Berbera. An additional incentive for the deal is that there has been a long-running dispute surrounding DP World’s port in Djibouti, the largest container terminal in Africa, the article added. (Wall Street Journal)   DP World (DU): AED17.20 as of 31 May 2016, Rating: Buy, FV: AED22.00 per share, MCap: USD14,276 million, DPW DU / DPW.DI