A visit to the Port of Berbera on the coast of Somaliland is certainly not for the faint hearted. It is blistering hot in summer with temperatures that regularly breach the forties, a journey made more challenging by the occasional camel loping along the main road. It is however an essential trip for any policymaker who wants to witness the real value of taking decisive decisions as opposed to endless dithering.
Firstly some context. Thirty years ago Somaliland chose independence and broke away from Somalia in the midst of successive wars. When these were brought to a close by a series of internal peace conferences, much of the country had been stripped bare and laid waste.
And though it is formally unrecognised diplomatically by any other state, Somaliland has transformed into a thriving little democracy in the bad neighbourhood that is the Horn of Africa. Somaliland is surrounded by a collection of failed states and despotic dictators. Yet it continues to surprise the world with regular elections, changes in power and democratic advancement.
Somaliland stands out as a country which has developed its own peace model, from the bottom up, one reason why it holds. Despite its devastating civil war inheritance, Somaliland has become the ‘country that can’ in Africa.
Part of their success is their ability to make better choices for the future of their country and then to execute these with determination. Which brings me back to the Port of Berbera. Realising that the port was a strategic asset that had been muddling along inefficiently under the control of the state entity, the Somaliland Port Authority (SPA), a decision was made to unlock the potential and concession the port long-term to an International operator.
A deal with Dubai Ports World was a based on a 30-year concession in a 65:35 joint venture with the SPA. The result has been a massive expansion in port capacity, currently in phase 2 of the development. Phase 1 attracted over US$244 million of investment in infrastructure, equipment and systems. On top of this there has been a doubling of the tonnage of general cargo, break and break bulk and a massive five-fold increase in container handling capacity to 500,000 TEUs annually. Phase 2, currently underway, will see container capacity again quadruple, and the quayside and handling facilities further expand with a further $200 million of investment.