Mogadishu (PP News Desk) — In 2017, the former President of Puntland State, Abdiweli Mohamed Ali, granted P&O a thirty-year concession to manage Bosaso Port. At the time, P&O had not been acquired by DP World, a UAE state-owned enterprise. That same year, plans were announced to construct a privately owned seaport at Garacad, in north Mudug under the jurisdiction of Puntland State of Somalia.
President Abdiweli’s administration (2014–2019) did not disclose key details regarding the transfer of Bosaso Port’s management to a foreign company. His successor, President Said Abdullahi Deni, claimed in February 2022 “Our argument was that P&O had failed to successfully manage Bosaso Port. As a result of this failure, the concession must be renegotiated. DP World was not directly involved in the port’s management. A joint venture between DP World and the Puntland State Government has now been established.”
In 2020, members of the Puntland parliament accused DP World of breaching the Bosaso Port contract. The Sool conflict of 2023 appeared to disrupt DP World’s strategy of maintaining Bosaso Port in a subordinate role to Berbera Port, which heavily relies on access to markets in other regions of Somalia. DP World sought to assume management of Garacad Port, which it regards as a key competitor to Bosaso Port.
“In retrospect, it was unwise to grant P&O a thirty-year concession for Bosaso Port. The Federal Government of Somalia has consulted a leading law firm to challenge DP World over agreements it signed with both the Somaliland administration and Puntland State,” said a lawyer in Mogadishu.
The Federal Government of Somalia contends that DP World entered into concession agreements with sub-national authorities, violating Somalia’s sovereignty. Senior executives from DP World are expected to visit Mogadishu to address concerns raised by the Federal Government regarding both Bosaso and Berbera ports. “The Federal Government considers the concession agreements signed by DP World for the management of Bosaso and Berbera ports to be null and void,” the lawyer added.
The UAE government plans to implement the Memorandum of Understanding signed last year between AD Ports Group and Somalia’s Ministry of Fisheries and the Blue Economy. AD Ports plans to “upgrade existing port structures in Somalia and to establish technical school to train professionals in fisheries and maritime industries in coastal regions of Somalia.
© Puntland Post, 2025
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