Berbera Port Turns Somaliland into Major Red Sea Player

Berbera port of Somaliland on July 21, 2018. MUSTAFA SAEED / AFP
Berbera port of Somaliland on July 21, 2018. MUSTAFA SAEED / AFP
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Berbera Port Turns Somaliland into Major Red Sea Player

Berbera port of Somaliland on July 21, 2018. MUSTAFA SAEED / AFP
Berbera port of Somaliland on July 21, 2018. MUSTAFA SAEED / AFP

The soporific seaside town of Berbera is slowly changing as it takes on a major role on the Red Sea shipping route, allowing breakaway Somaliland to dream of prosperity and even recognition.

At the Berbera port, dozens of containers are stacked on a sun-scorched platform and a few cranes creakily transfer sacks of sorghum and other goods from a rusting cargo ship.

The facilities are far from modern, but Somaliland hopes its position on one of the world's busiest shipping routes will turn the state into a job-creating dynamo -- and encourage international recognition 27-years after it split from Somalia.

Somaliland's ambitions were boosted in March when it struck a deal giving Dubai port giant DP World a 51-percent stake in the port and Ethiopia 19 percent. 

DP World says it plans to invest $442 million (377 million euros) to modernize the port, with a first extension of 400 square meters (4,300 square feet) to begin in October that is expected to take 24 months, Agence France Presse reported.

"The benefit we expect from the development of the port is jobs. We expect to get many foreign investors to ... generate employment and income for us," said Saad Ali Shire, the Somaliland minister of foreign affairs.

Nevertheless the arrival of DP World has been a "cultural shock" for those used to the slow pace of business at the port, admits Said Hassan Abdullahi, director general of the port authority.

The deal has seen the number of containers transiting through Berbera double. Abdullahi predicts that the investment will cause throughput to increase fivefold -- a figure that will bring Berbera closer to the capacity of nearby Djibouti's ultra-modern ports.

The development will be a boon not only to Somaliland but also its landlocked neighbor Ethiopia -- a fast-growing economy with a population of 100 million people that is eyeing new ports across the region to export its goods.

Cut off from the coast since former province Eritrea won independence in 1993,, Ethiopia funnels 95 percent of its trade through Djibouti.

Somaliland, which avoided the anarchy and chaos Somalia has experienced over the past three decades, "is well positioned to have a more influential role when it comes to economic and trade issues," said Ahmed Soliman, a researcher at the London-based Chatham House think-tank.

However the DP World deal has angered Somalia, which does not recognize Somaliland's independence and declared it unconstitutional.

Some in Somaliland worry about the price they may have to pay, but Shire brushes aside their concerns.

"Of course, carrying foreign forces on your soil always carries a risk," he said. "(But) we believe that the benefits are more than the risks."



US Approves $385 Mln Arms Sale for Taiwan

Taiwan President Lai Ching-te gives a keynote address on the island's national day. in Taipei, Taiwan October 10, 2024. (Reuters)
Taiwan President Lai Ching-te gives a keynote address on the island's national day. in Taipei, Taiwan October 10, 2024. (Reuters)
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US Approves $385 Mln Arms Sale for Taiwan

Taiwan President Lai Ching-te gives a keynote address on the island's national day. in Taipei, Taiwan October 10, 2024. (Reuters)
Taiwan President Lai Ching-te gives a keynote address on the island's national day. in Taipei, Taiwan October 10, 2024. (Reuters)

The US State Department has approved the potential sale of spare parts for F-16 jets and radars to Taiwan for an estimated $385 million, the Pentagon said on Friday, a day before Taiwan President Lai Ching-te starts a sensitive Pacific trip.

The United States is bound by law to provide Chinese-claimed Taiwan with the means to defend itself despite the lack of formal diplomatic ties between Washington and Taipei, to the constant anger of Beijing.

Democratically governed Taiwan rejects China's claims of sovereignty.

China has been stepping up military pressure against Taiwan, including two rounds of war games this year, and security sources have told Reuters that Beijing may hold more to coincide with Lai's tour of the Pacific, which includes stopovers in Hawaii and Guam, a US territory.

The Pentagon's Defense Security Cooperation Agency said the sale consisted of $320 million in spare parts and support for F-16 fighters and Active Electronically Scanned Array Radars and related equipment.

The State Department also approved the potential sale to Taiwan of improved mobile subscriber equipment and support for an estimated $65 million, the Pentagon said. The principal contractor for the $65 million sale is General Dynamics.

Last month, the United States announced a potential $2 billion arms sale package to Taiwan, including the delivery for the first time to the island of an advanced air defense missile system battle tested in Ukraine.

Lai leaves for Hawaii on Saturday on what is officially a stopover on the way to Marshall Islands, Tuvalu and Palau, three of the 12 countries that still to have formal diplomatic ties with Taipei. He will also stop over in Guam.

Hawaii and Guam are home to major US military bases.

China on Friday urged the United States to exercise "utmost caution" in its relations with Taiwan.

The State Department said it saw no justification for what it called a private, routine and unofficial transit by Lai to be used as a pretext for provocation.