IN SHORT: Berbera Port in Somaliland, operated by DP World in partnership with the Somaliland government, has expanded annual container handling capacity to 500,000 TEUs and is positioning itself as a major alternative trade gateway for landlocked Ethiopia and the broader Horn of Africa region. The port is located near the Bab al-Mandab Strait, one of the world’s most strategic maritime chokepoints, and its long-term expansion plan targets capacity of 2 million TEUs. The adjacent Berbera Economic Zone is designed to attract manufacturing and logistics investment to complement port operations.
Berbera Port in Somaliland is emerging as one of East Africa’s most strategically positioned logistics hubs, leveraging its location near the Bab al-Mandab Strait, a DP World partnership that has brought world-class terminal management, and the Berbera Corridor road link to landlocked Ethiopia to position a port that most global investors had ignored as a genuine competitor to Mombasa and Djibouti for East African trade flows. New shipping services, rising cargo throughput and growing investor interest in the Berbera Economic Zone are converting the port from a regional obscurity into an infrastructure asset that analysts say could fundamentally reshape supply chain economics across the Horn of Africa.
- Berbera Port’s modern container terminal, built through DP World’s partnership with the Somaliland government, now handles 500,000 TEUs annually and has long-term plans to scale to 2 million TEUs. New berths, modern ship-to-shore cranes and upgraded cargo handling systems capable of accommodating large container vessels have transformed a port that previously handled primarily livestock and general cargo into a competitive container terminal with the physical infrastructure to handle significant trade volumes.
- The port’s strategic advantage is its location. Berbera sits on the Gulf of Aden, directly overlooking the Bab al-Mandab Strait through which approximately 7 million barrels of oil per day and an estimated $1 trillion in annual trade flow between the Red Sea, the Indian Ocean and global markets. The Hormuz conflict has already redirected some shipping away from Gulf ports, increasing the strategic value of alternatives along the Red Sea-Gulf of Aden corridor where Berbera sits.
- The Berbera Corridor is the land infrastructure that gives the port its hinterland market. The corridor links Berbera through road infrastructure to Ethiopia, one of Africa’s largest economies with 130 million people and the continent’s fastest-growing aviation sector. Ethiopia has only one port access option through its neighbour Djibouti, where port congestion and container dwell times have been a persistent constraint on Ethiopian import and export logistics. Berbera offers an alternative route that could reduce logistics costs and delivery times for Ethiopian businesses.
- The Berbera Economic Zone adjacent to the port is designed to capture the manufacturing and processing investment that follows a functioning logistics hub. By co-locating industrial facilities near the port, the SEZ model aims to develop export-oriented manufacturing that can use the port’s access to international shipping to reach global markets. Officials cite potential for export processing in textiles, food processing and light manufacturing using Ethiopia’s labour force and Somaliland’s port access.
- DP World’s involvement provides the institutional credibility that has attracted shipping line interest. DP World operates some of the world’s largest container terminals including Jebel Ali in Dubai, and its decision to invest in Berbera through a long-term concession was the single most significant signal to global shipping companies that the port meets international operational standards. Vessel productivity and cargo throughput have increased substantially since DP World began operations, according to the company.
Somaliland’s port ambition runs directly against one of the most unusual geopolitical constraints in African business: Somaliland declared independence from Somalia in 1991 and has operated as a self-governing territory for 35 years, but no sovereign state recognises its independence, meaning Somaliland does not have a seat at the UN, cannot join the AfCFTA as a full member, and cannot benefit from international development finance through standard channels. The DP World concession structure navigates this constraint by operating as a commercial partnership rather than a state-to-state arrangement. Investors in the Berbera Economic Zone face the same legal complexity. But the port’s operational performance and growing trade volumes are demonstrating that practical commerce can proceed even where formal legal recognition is absent.
The Bigger Picture: Berbera’s emergence as a trade gateway is a commercially significant development in a part of Africa that global investors have historically overlooked. Ethiopia’s 130 million people and rapidly growing economy require port access that can handle rising import and export volumes reliably and cost-effectively. Djibouti has provided that access but at a price premium reflecting monopoly positioning. Berbera, at 500,000 TEUs and targeting 2 million, is building the capacity to provide genuine competitive pressure on Djibouti’s stranglehold over Ethiopian trade logistics. Competition in port access is the single most powerful lever for reducing logistics costs across the Horn of Africa. If Berbera succeeds in capturing a meaningful share of the Ethiopian corridor, the downstream benefits for Ethiopian business competitiveness are substantial.
Source: Horn Diplomat, June 8 2026
