Suldaanka

Somaliland to establish a Dry Port in Gambadhe

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What this means is that, Somaliland's big importers will be able to build wholesale warehouses. The products on offer will be much cheaper than any similar/exact product that is imported through Bosaso Port, as these products will not be taxed by Somaliland. 

Small businesses in Puntland will be able to skip the middlemen and buy bulk products directly.

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Oodweyne   

Suldaanka,

This is really a good business sense and strategical move to "neutralize" any commercial linkage between Pirate-land and Sool region. Why? Well, this will be hub-and spoke distribution nodal point (which is what dry-port really is), whereby on price and reach alone, it can be a place that can undercut any businessman who is relying his goods to come through via Bossaso's port.

Hence, once this bulk distribution center (with no tax levied up front) is build in that area, then the direct road from Berberra's port to this point will almost be acting as nothing less than a "multiplier effect" for business growth and the "facilitator" of the commercial connection between Somaliland to all the way to the central regions of Somalia. Which in turn can then easily flourish.

Consequently, whoever thought of this way of connecting Berbera's upgraded port (once it's finished) with rest of Somalia's southern economical arteries whilst using Sool region as a "distribution mid-point", or as a "dry-port", actually was business genius, indeed.  

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Your obsession in finding ways to undermine  Somalis is amazing. How do you figure in linking up with rest of Somalia if the goods actually have to go through Puntland?

 

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Oodweyne   
1 hour ago, Che -Guevara said:

Your obsession in finding ways to undermine  Somalis is amazing. How do you figure in linking up with rest of Somalia if the goods actually have to go through Puntland?

First of all, the only obsession that is in any evidence in here is actually in your head alone, mate. Secondly, if it will rest your head at all, let me say that the thing I am talking about is that of a commercial "competition". And, that, as you should know it by now, is about as the "idea" of even taking your own brother to the cleaners, if you can beat him fair and square.

Secondly, the other point you are talking about shows how you are still in the dark about how the "value of good logistical connection", the "merit of low tax-rate", and finally the "speedy bulk distribution of goods" can collectively contribute to the outcome of any raging competition. And could do so more than anything else.

Let me give you some relevant scenario, and say you do live in Boston, I take it, right? Well, you could probably easily found out that all across the North east (or at least New England area) you will see individual state A that is sea-based State, and yet the businesses located in neighboring state B has won all the "competition" in supplying goods across that specific state A, whilst they are using their own port in State B, even when at the same time the port facility of State A are still in business and it's humming with some sort of business activities, even if it's a reduced version.

It's all about having an "commercial edge", if all other things are made equal.

That is what I am talking about, particularly in-terms of how Berberra's port and its "distribution businesses" can "corner" the market of both Somaliland and Somalia. And do so to all the way into the central regions of Somalia, whilst using this sort of "dry-port-distribution" and "bulk-and-goods-supplier-point" in this Sool region.

Do you now got the point I am belaboring in here, mate?

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I think what @Che -Guevara doesn't know is that this is also in Puntland's interest. Since Somaliland doesn't tax, there is an incentive for Puntland to tax the products. There is already a tax office for Puntland at GodQaboobe.

The thing is, the central regions in Somalia have already ditched Bosaso for Mogadishu Port. But since Cheeseman came, there has been a lot of tax increases. If Mogadishu's Bakaraha Market at one time used to offer cheapest market price products, today it is the opposite. The products in Bakahara are very expensive when you compare it to same products available at Togochale market. 

For Puntland, it is a choice, they can work with the market and be innovative i.e. make it easier for businesses from Central regions to shop at Gambadhe and in the process collect a lot of more tax that would noramlly go to Mogadishu. 

Or they can make it harder but eventually the market will win either through blackmarket or contraband and in the process Puntland will actually experience faster decline as the prodcuts arriving in its markets are not taxed and probably in better shape (i.e. quality of frieght handling, Puntland Business currently unload from containers and load on dows and many products get destroyed or damaged.). 

 

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Suldaanka, Meel dheer gaadhi mayso inta  fekerkaagu yahay SOMALI kale hoos u dhigeeda , look back at the map, It is a big potential to do business with Ethiopia, and this is a good move, but mark may words, it will not make a difference or slow down other Somalis doing same business.

Check two new ports coming up in Mudug, Hobyo and  Garacad .

Anyway, the more the merrier

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14 minutes ago, maakhiri1 said:

Suldaanka, Meel dheer gaadhi mayso inta  fekerkaagu yahay SOMALI kale hoos u dhigeeda , look back at the map, It is a big potential to do business with Ethiopia, and this is a good move, but mark may words, it will not make a difference or slow down other Somalis doing same business.

Check two new ports coming up in Mudug, Hobyo and  Garacad .

Anyway, the more the merrier

Competition is good for all. I think, a totally free movement of goods is a good thing, and tariffs. What should differentiate is the service, the connections and infrastructure. That way the full potential can be reached, because it is a survival of the fittest, smartest and savvyest.

Ethiopia is the cake. There was an Oromia Regional Business consortium led by the Oromia Vice President that recently came to Berbera. They are very keen to divert some of their businesses to Berbera. 

Also, there are plans to establish a dry port in Juba, capital of South Sudan. The idea is to use Berbera's International Airport to deliver goods from Berbera Port via dedicated DP World Cargo Aircraft from the newly refurbished Berbera International Airport. 

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Oodweyne   
4 hours ago, Suldaanka said:

Also, there are plans to establish a dry port in Juba, capital of South Sudan. The idea is to use Berbera's International Airport to deliver goods from Berbera Port via dedicated DP World Cargo Aircraft from the newly refurbished Berbera International Airport.

That is the ticket, really. And in particularly, if we get DP World to "facilitate" this by way of them building the dry-port at the other end in Jubba, which in turn will be the "receiving end" of the "logistical connection" between Berbera and Jubba through the refurbished Berberra airport that can even now handle a large container-carrying planes. Hence, if matters are duly arranged in this way and in this fashion, then, quite evidently, the sky will be the limit for the potential economical growth of Berberra's port. 

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It looks like the Berbera's tax-free policy toward Puntland Businesses, has practically closed down Bosaso Port. 

At this time of the year, it is usually the open season  "Bad Furan" and is supposedly the busiest time for Bosaso Port. But there is next to zero activity, according to longtime resident of Bosaso city. 

Probably no businessman wants to be left behind, they moved to Berbera. 

 

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Currently the old Port of Berbera is being dug to remove accumulation of sand. The original depth of the Port when it was used as a Naval Base by US was 16m, enough to accommodate even Nuclear Carriers. 

Sand being dug out of the old Port sea bed is being used to reclaim land in the new 400m container terminal being built. It is an innovative way to kill two birds with one stone. 

As we speak, the old Port of Berbera is now able to accommodate large container vessels like the one below.

 

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Kililka and Oromo and even the South Kilil should be more of a focus than central Somalia

Population 50 Million. Concentration 3-4 times to that of Somalia.

Only infrastructure needed good rood to Jigjiga or Dirdahaba after that there is good highways and railroad.

 

Competition almost none.

Djibouti has enough business will not feel any pain if Berbera takes 20% of Ethiopian business right away all at once.

Eritrea case looking hopless by the day. UAE has abondoned all that highway, pipeline etc Arab fake talk for African dictators (the Don not included). Ethiopian business people do not want since no governance and legal system in place.

 

 

 

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1 hour ago, Old_Observer said:

Kililka and Oromo and even the South Kilil should be more of a focus than central Somalia

 

In the case of Central Somalia/Puntland, it is actually a case of the customer knocking on the supplier's door to do business. You can't turn that sort of customer away. 

it is a win-win solution.

With regards to Ethiopia, what will be a game changer is when the Ethiopian government privatises the Ethiopian Shipping Lines company and at the same time allowed private Import/Export companies to operate inside Ethiopia. This will allow competition to determine which port to use rather than government monopoly. 

There is a lot of work being done behind the scenes regarding this. In fact, DP World is in the process of openning a dry port near Bishoftu just outside Addis Abeba. 

 

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As part of the Gambadhe Dry Port initiative, Somaliland Gov't will build a road from Laascaanood to the Sool/Ethiopia border. This will help transportation and ease of movement of goods in that part of the country all the way inside Ethiopia's Somali Region.

 

 

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