Berbera Port: A Rising Geopolitical and Trade Hub

By: Mohamed Duale, Horndiplomat

Nestled on the Gulf of Aden, Berbera Port is quickly becoming a crucial economic and geopolitical asset in the Horn of Africa. Once a modest outpost, the port has transformed into a significant maritime hub, thanks to substantial investment and strategic development. Its growing importance is drawing the attention of both regional and global powers.

Strategic Location and Investment

The $300 million upgrade by DP World, a UAE-based multinational logistics company, has turned Berbera Port into a vital maritime corridor. Its strategic location—just south of Yemen and close to the Red Sea—positions it as a chokepoint for approximately 12% of global trade flows. In addition to modernized facilities, the port now boasts a military base and an airstrip, further enhancing its strategic significance.

Bashir Goth, the head of Somaliland’s mission to the US, told Bloomberg that the UAE’s presence allows it to monitor activities throughout the Gulf of Aden and the surrounding region. This investment has transformed Berbera into a focal point for countries such as Russia, Turkey, China, Iran, and the United States, all vying for influence along this critical stretch of coastline.

“It’s a very strategic place, and the UAE can monitor everything that is happening in the whole region and the Gulf of Aden,” said Goth.

A Key Player in Regional Trade

Berbera Port has become indispensable for Ethiopia, a landlocked nation in need of reliable access to global markets. Its upgraded infrastructure allows it to serve as a crucial trade lifeline for Ethiopia, reducing the country’s dependency on Djibouti. The port’s growing efficiency and connectivity have also made it an attractive alternative for international shipping routes.

In the World Bank’s 2024 Container Port Performance Index, Berbera ranked 106th globally, surpassing regional competitors such as Djibouti, Egypt, and Somalia. This improvement reflects the port’s rising role as a commercial hub in East Africa.

Geopolitical Ramifications

The development of Berbera Port is a significant milestone in Somaliland’s ongoing growth as a key player in regional trade and security. Since declaring its independence in 1991, Somaliland has focused on building stability and fostering international partnerships, and Berbera’s strategic location has further bolstered its importance on the global stage.

Recent developments, including earlier this year Ethiopia’s proposal to recognize Somaliland in exchange for port access and a naval base, highlight the growing international recognition of Somaliland’s strategic role in the Horn of Africa. This collaboration is seen as a positive step in strengthening regional security and economic cooperation.

As Matt Bryden, director of Sahan Research, explained to Bloomberg, an independent Somaliland presents greater opportunities for enhancing security and stability in the Gulf of Aden, with its ability to manage its resources and geopolitical positioning more effectively.

“Berbera is becoming more strategic in light of new threats to global maritime trade in the Red Sea and Gulf of Aden,” said Bryden. “Its commercial potential as a corridor for international trade with landlocked Ethiopia only adds to its importance.”

With continued global support and investment, Somaliland is on a trajectory to further solidify its position as a key player in the region, offering enhanced security and economic opportunities for all stakeholders involved.

A Future Built on Stability

Berbera’s transformation showcases its immense potential as a regional trade hub, but its future hinges on maintaining political stability and effectively managing international relations. The port’s strategic significance makes it a valuable asset not only for Somaliland but also for the global maritime industry. With continued investment and development, Berbera could solidify its role as a cornerstone of economic growth and security in the Horn of Africa.

Source: Bloomberg, HORNDIPLOMAT