DP World Port Faces Uncertainty After Somalia Severed Ties
The Berbera port operator now navigates a complex jurisdictional dispute that threatens regional trade infrastructure.
Updated on Sept. 21, 2026 in International Trade
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DP World's Berbera port facility currently operates at 30 percent capacity following the Somali federal government's decision to terminate all agreements with the United Arab Emirates on January 12, 2026. The move complicates the status of a major logistics hub serving the Horn of Africa.
Why it matters
The dispute creates significant regulatory and operational risk for firms relying on the Berbera transport corridor to move goods into Ethiopia. Political instability at the federal level now threatens the viability of $442 million in infrastructure investment.
DP World has invested $442 million to expand the facility, increasing annual container capacity to 500,000 TEU from an initial 150,000 TEU. While general cargo capacity reaches 2 million tons, the site currently operates at only 30 percent of its total potential utilization.
The players
DP World
A global multinational logistics company based in the United Arab Emirates that manages marine terminals and economic zones.
Somalia
A federal nation currently exerting its authority to revoke international agreements previously established by regional territories.
The details
DP World expanded the site through a multi-phase infrastructure project that included the creation of the Berbera Economic Zone and a dedicated transport corridor to the Ethiopian border. Regional authorities in Somaliland, Puntland, and Jubbaland have rejected the federal government's order to cease cooperation with the UAE. Operators using these routes face heightened uncertainty regarding the future management of customs and cargo clearance services at the terminal.
Timeline
2017: DP World commenced operations at the Berbera port.
January 2024: Ethiopia and Somaliland signed a maritime memorandum of understanding.
December 2024: Somalia and Ethiopia reached a diplomatic agreement in Ankara.
January 12, 2026: The Somali federal government terminated all agreements with the United Arab Emirates.
Market Landscape
The sudden termination of agreements marks a departure from the regional cooperation patterns seen under the 2024 Somalia-Ethiopia Ankara agreement. This move introduces a significant break in the stability required for long-term cross-border logistics investment in the Horn of Africa.
Operators with goods currently in transit or contracted for future shipment through Berbera should consult with legal counsel regarding the status of their cargo insurance and terminal access. Monitor any secondary announcements from regional authorities, as they continue to contest the federal government's decision.
The takeaway
The sudden invalidation of international port contracts underscores the high geopolitical risk inherent in infrastructure-heavy emerging markets. Supply chain managers should diversify entry points and conduct regular legal audits of transit agreements in politically volatile regions.
Further reading
For more on shifts in cross-border logistics, visit the International Trade section.
Source note: This article includes information reported by Caasimada Online.
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