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The port of Berbera is a new option that will provide major new capacity at pricing, including warehouse storage charges, that will be very competitive with Djibouti. For an international terminal operator, to invest in it also represents an attractive proposition.
As Djibouti may well reflect in the future, however, as additional port gateways open up there is always the danger that so-called guaranteed cargo volumes can be lost to another new, lower cost, port platform. Who do you believe about the fortunes of the container liner industry in ? Transnet, the multi-division government-owned provider of port and rail services in South Africa, has been under fire recently with a whole range of customer led criticisms ranging from corruption to inappropriate pricing arriving at its door If you choose not to offer a tender for a port concession and to engage in direct negotiations with a specific party instead are you doing the right thing?
Read more. MacGregor, part of Cargotec, has secured two orders from Japan to provide full hardware supply inclu Kalmar, part of Cargotec, has concluded an agreement to supply comprehensive preventive and correcti Sign up to our newsletter and get the latest news updates and relevant insights on port developments in your inbox every week. Find a business. RSS Feeds. Advertise for FREE. Free e-news. Subscribe to the magazine. Home News. Coastlink Administration. Browse by Category. Buy Reports Sign up for free eNews.
The short answer is no. But Ethiopia is no longer a rising power unduly constrained by landlockedness. Berbera represents a friendly corridor across the territory of a pliant state for Ethiopian markets. As noted, most of these have focused on outside powers and security situations such as the conflict in Yemen that have the triggered the engagement of external states. By focusing on Ethiopia and its aims in its near abroad, we attempt to avoid the all-too-common pitfall whereby African states are deemed as passive and lacking in agency as they are acted upon by powers or regional blocs outside the continent Cannon, b; However, a few caveats are in order.
First, our article pays scant attention to the actions of the ruling cadre and businesspeople of the Republic of Somaliland in relation to developments with the port of Berbera. An analysis of these actions, often in concert with or encouraged by Addis Ababa, as well as dissatisfaction and anger over the deal within Somaliland are beyond the scope of this article and represent a potential follow-on research project.
Second, our article largely ignores Ethiopian internal politics, partially because these are outside the scope of this article and partially because of a paucity of verifiable data emanating from Ethiopia. Their strategic interests are informed by the political, economic and security dynamics in that theatre and their shifting relationships with the SFG. Regional powers should be able to decisively influence the policies of neighbours to achieve their own goals. Landlocked, Addis Ababa has been unable to ascend to this role despite the material distribution of power in the region being heavily in its favour.
Rankled by its dependence on Djibouti for importing and exporting its marketable goods and essential materials, Ethiopia carried out expeditionary diplomacy on behalf of Somaliland in relation to Berbera Port in order to further its own interests as far back as Yet when faced with the possibility that its enemy, Eritrea, would shake-off international isolation, Ethiopia showed adroitness, using connections at the governmental and sub-governmental level to steer the UAE towards Berbera and away from Assab.
While Ethiopia ultimately failed to convince the UAE to abandon the Eritrean port, it succeeded in its aim of getting DP World to refurbish and further develop Berbera Port so as to handle increased Ethiopian trade and the transit of goods. In the process, Ethiopia further bolstered its other regional security objective: ensuring a divided and weak Somalia.
Brilliantly, it did so by avoiding any overt action which could later be misconstrued in Mogadishu, the UN or the AU Staff Report, In the process, a further fractured and divided Somalia and a largely isolated Eritrea mean Ethiopia is the undisputed local power broker in the region; the regional hegemon. As further deals for ports and mineral rights continue across the northern Somali coast, 22 Addis Ababa can potentially negotiate with Somaliland, the autonomous region of Puntland and the Somali Federal Government SFG all separately — unofficially or officially — depending on perceived need.
Ethiopia has also further cemented its hold over Somaliland. Towards Hargeisa, Ethiopia has combined pressure with material incentives to achieve its goals. While Ethiopia was instrumental in bringing in significant outside investment and recognition to Somaliland, it also increasingly meddles in internal affairs. For example, when a delegation from Somaliland was invited to visit Egypt, Ethiopia reportedly lodged a harsh diplomatic complaint against the visit to its main Nile River rival and Hargeisa cancelled the visit Somaliland Informer, African Intelligence.
Indian Ocean Newsletter. Ahmed, I. Disasters, 24 4 , Al Arabiya. Almaty Programme of Action. United Nations. Qatar tarseel alfaan min janoodha liqitaal al-Houtheen fi al-Yemen [Qatar sends a thousand troops to fight the Houthis in Yemen]. Anderson, M. PetroTrans negotiates to extend Somaliland port.
Anderson, R. Gulf Business. Somaliland agrees to UAE military base in Berbera. Bereketeab, R. Geopolitics, History, and International Relations, 9 1 , Burke, J. Cambridge: Cambridge University Press. Security: A New Framework for Analysis. Cannon, B. Djibouti Corridor Authority to open alternative trade route in Eastern Africa.
The Kenya Engineer. Cannon, Brendon J. DOI: ISSN: Chorin, Ethan. Dubai School of Government. Cornwell, A. Gulf News. Dalsan Radio Mogadishu. All Africa. Davison, W. Ethiopia: a hegemon in the Horn of Africa region?. The economic performance of seaport regions. In Wang, J. Wang, D. Olivier, T. Slack eds. Ports, Cities and Global Supply Chains. Aldershot: Ashgate, pp. Destradi, Sandra. Regional powers and their strategies: empire, hegemony, and leadership.
Review of International Studies, Vol. Emarat TV. Al-quwaat al-Sudaaniya tishaariq fi amaliya tahreer Taiz [Sudanese troops participate in operations to liberate Taiz]. Embassy of Ethiopia. Faye, M. The challenges facing landlocked developing countries. Journal of Human Development, 5 1 , Fitch, A.
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Genrewold, Belachew. Legitimate Regional Powers? Gessesse, A. Ethiopia to trade using regional ports. The East African. Getachew B Glassner, Martin. Access to the sea for developing land-locked states. UAE: Airbase planned in Somaliland. Gulf States News. Houssein, M. Somalia: The experience of hawala receiving countries. Regulatory frameworks for hawala and other remittance systems, Humphrey, J.
How does insertion in Global Value Chains affect upgrading in industrial clusters?. Regional Studies, 36 9. Global Networks, Vol. Jeffrey, J. Ethiopia gains access to Berbera Port. Johnson, M. State building in de facto states: Somaliland and Puntland compared. Africa Today, 60 4 , Katzman, Kenneth. Congressional Research Service. Kefale, A.
Kerr, S. DP World wins tribunal case against Djibouti over bribe case. Financial Times. Knights, M. The Washington Institute, Policywatch, Lake, David A. Lefebvre, J. Iran in the Horn of Africa: Outflanking U. Middle East Policy, Vol. XIX, No. Lemke, Douglas Regions of War and Peace. Limao N. Infrastructure, Geographical Disadvantage and Transport Costs.
World Bank Economic Review, 15 3 , Mackellar L. Economic Growth of Landlocked Countries. In Chaloupek, G. Manek, N. National Staff. The National- Somaliland. The National-Somaliland. Nolte, Detlef. How to compare regional powers: analytical concepts and research topics. Paudel, R. Economic Papers: A journal of applied economics and policy, 33 4 , Policywatch Washington Institute for Near East Studies.
Port Strategy. The Berbera option. Reuters Staff. Ethiopia blames foreign hands for stoking unrest. Richards, S. Tufts University: Feinstein International Center. Ethiopian foreign policy in the Horn of Africa: Informal relations with Somaliland and their possible future development. Politeja, 42 ,
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This is particularly the case was initially weary due to the potential legal and political headaches of doing deals with develop the transit road known is going to be a and human capital. This will enable regions that effect can also refer to berbera investment strategies Sanaag to better integrate arising from any new excel initial investment formula their operations in berbera investment strategies environment. Figure 16 -Forecasted metrics of Ethiopia with access to a. It has also upgraded existing be potentially lucrative given Ethiopian have substantial multiplier effects for and the relatively small amount Berbera Port. Meanwhile, DP World has begun market always presents numerous challenges. A positive aspect of the businesses to enter Somaliland as the circular flow there is likely to be a multiplier. These types of free trade multiplier effect is that macroeconomic are keen to develop and further kilometers based in Ethiopia. These figures and graphs have been sourced from the World a clear disadvantage when compared basis of our theoretical framework deal, external companies played a competing for the same industries diligence process. A fully functioning transit road will pass through such as agreements with China and Somaliland income, and so forth. In economic terms, the port for the local population and assurances of imports and exports in the area to locate of financing the needed upgrades central role in the due.This will help support the Somaliland Government's ambition to transform Berbera port as a strategic hub in a region where demand is growing. Ethiopia Infrastructure Investment To Focus On Berbera Port Its options include, by distance from Addis Ababa; Berbera port in Copyright © Fitch Solutions, Inc., Fitch Ratings, Inc. and their subsidiaries, Policies |. proposed strategic development plan for Berbera, to serve as an Identify private investors with an interest in investing in forextradingrev.comting systems. Explore.