The United Arab Emirates is close to win a concession to manage and develop Bosaso Port in the semi-autonomous regional state of Puntland.
Puntland Chamber of Commerce and Industry chairperson, Mohamed Aydid Jama’a has confirmed the plan saying Puntland State wants to hand over the management Puntland’s largest port, Bosaso to the government of United Arab Emirates.
“Actually there is that ongoing plan; this will led the expansion of the port. An investment of multimillions is planned to expand the port infrastructure if the plan succeeds,” said Jama’a.
Jama’a says the deal would make the Port to be new hub and pave the way for increased trade and investment in Puntland and in the horn of Africa.
The chairman said Bosaso port is connected to UAE, Oman, Saudi Arabia and Yemen through the Red Sea.
Since the collapse of the central government in 1991, Bosaso seaport became an important commercial point of entry, serving also as a refueling station for maritime transport between the Red Sea and Persian Gulf.
Last year, Puntland started upgrading the port and building of large oil storage with capacity of more than 250,000 barrels of oil, three large warehouses and large mobile elevators.
The move comes months after the breakaway Somaliland signed a $442m (£353m) deal for a Dubai-based firm to upgrade the port of Berbera, which mainly exports livestock to the Middle East.