Not rhetoric. Not projections. Independent data now shows Berbera Port is cutting costs, creating jobs, and anchoring Somaliland’s economy.
On the sunbaked Gulf of Aden coastline, the cranes towering over Berbera Port signal more than an infrastructure upgrade. They mark a structural shift in how Somaliland connects to regional and global trade—and how frontier economies can change trajectory when capital, governance, and strategy align.
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A newly released independent evaluation commissioned under the UK’s Foreign, Commonwealth and Development Office and British International Investment (BII) provides the most detailed empirical assessment to date of the DP World–BII investment in Berbera Port. Its conclusion is unambiguous: the expansion is already delivering measurable economic, trade, and environmental gains for Somaliland, with broader regional implications still unfolding
Before the expansion, Berbera was constrained by shallow draft, limited quay length, and slow vessel turnaround. Phase 1 of the project, completed in 2021, fundamentally altered that equation. Container handling capacity increased from 150,000 to 500,000 TEU, vessel turnaround times dropped from 64 hours in 2018 to just 25 hours in 2024, and the port is now capable of accommodating significantly larger ships—driving down per-unit shipping costs through scale efficiencies
Those operational gains translate directly into economic impact. The study estimates that in 2024 alone, transport cost reductions linked to the port expansion reached $8.4 million, with net savings of $6.9 million after accounting for new users attracted to the port. For import-dependent Somaliland, where logistics costs feed directly into consumer prices, those savings are not abstract—they shape daily economic reality.
The benefits extend inland. Economic modelling shows Berbera has become cost-competitive for parts of eastern Ethiopia and Somaliland previously underserved by the Addis Ababa–Djibouti corridor, particularly regions beyond the effective reach of the railway. As a result, trade is gradually rerouting from Djibouti to Berbera, strengthening Somaliland’s role as a regional gateway rather than a peripheral endpoint.
Inside Somaliland, the numbers are striking. In 2024, the upgraded port and the adjacent Berbera Economic Zone supported an estimated 2,490 jobs and generated $45.1 million in value added. Of that, 921 jobs and $16.7 million were directly attributable to the port expansion itself—equivalent to roughly 0.4 percent of Somaliland’s GDP in a single year. For a small, unrecognized economy with limited access to international finance, that scale of impact is material, not marginal.
There are environmental dividends as well. More efficient operations, shorter shipping times, and larger vessels have reduced carbon emissions by an estimated 7,651 tons annually, underscoring how modern logistics can align economic growth with climate mitigation.
The report is cautious, however, about overstatement. Current trade volumes do not yet require the port’s full capacity, partly due to disruptions from the Red Sea crisis. Nor does the analysis fully capture downstream effects such as lower consumer prices, productivity gains for local producers, or spillovers into Ethiopia. If anything, the authors suggest, the port’s total contribution is likely understated.
Berbera’s lesson is broader than Somaliland. It demonstrates that in fragile or overlooked markets, well-structured infrastructure—anchored by capable operators and long-term capital—can generate outsized returns in efficiency, resilience, and economic sovereignty. In a region where instability is often the norm, Berbera Port is emerging as proof that strategic investment can quietly, but decisively, change the balance.
