Original Story Published by: Ruari Phillips for East African Business Week
Addis Ababa, Ethiopia–Ethiopia has grown its portfolio of ports with the acquisition of Sudan’s largest sea gateway, Port Sudan.
DP World, who jointly own the port of Berbera and Djibouti with Ethiopia, are bidding for concessions along with French logistics company Ballore, and ICTS from the Philippines.
A concession is a contract in which the government or governments (in this case Ethiopia and Sudan) transfer operating rights to a private enterprise. This contract usually includes construction, development and rehabilitation of a site.
Port Sudan is located in the Red Sea State which has an area of 212,800 km and population of 1.448 million. It is composed of three ports: the Northern Port, which handles petroleum products, containers and bulk grain; the Southern Port, handling edible oils, molasses, cement; and Green Harbour on the east side of Port Sudan, which handles dry bulk cargo, seeds and containers.
The acquisition is a good move due to Ethiopa’s position as a landlocked republic. The country is currently experiencing high growth (6% to 7% a year) so it needs fast access to foreign markets through sea ports and airports. With talks of another agreement in Kenya, Ethiopia may soon be able to boast of part,owning four major sea gateways in East Africa.
“We are committed to providing all the needed facilities to ensure the flow of goods via Port Sudan to Ethiopia,” said President Umar al-Bashir. “Ethiopia already ships large consignments such as fertilizer through our gateway.“
The three companies bidding for Port Sudan are DP World, Ballore and ICTS. Bollore is a French transportation company headquartered in Puteaux, on the western outskirts of Paris. The business employs 28,000 people and is the largest operator in Africa with 17 container terminals around the continent.
To read the full article, visit East African Business Week.
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