Djibouti seizes control of Dubai-run Doraleh port; Somalia rejects Dubai Port World

[thatrapsfan]

Good drop

I remember the Boreh case. IOG was applying real pressure for years. He even had him on international lists if I recall correctly.

Yeah Djibouti had a simulatenous case against Boreh over the DP World deal that they also lost last year. Had to pay millions in his legal fees:

Djibouti businessman Abourahman Boreh cleared of corruption charges by London court

They actually first announced they were cancelling the DP World deal in 2016, but it was allowed to operate pending the resolution of the legal case. They lost that case last week and said fukk it let’s cease it

Djibouti always had majority stake over the port, but gave DP World management over it as part of the original agreement and it’s what they wanted to reverse after the Boreh fallout. Another point they’re trying to use as a loophole to annul the deal, is that it wasn’t approved by Parliament as per Djibouti law but who’s fault is that? It’ll be interesting to see how this ultimately ends, but IOG seems deadset on ensuring the UAE is shutout. I’m sure they will give the Chinese operating rights if they are able to get out without much compensation.

It’s also not hard to imagine similar disputes in the horizon in all of these simulatenous military base projects they got going on. IOG won’t live forever and if/when power changes hands there will be tons of international disputes to follow.

 

[88m3]

Yeah Djibouti had a simulatenous case against Boreh over the DP World deal that they also lost last year. Had to pay millions in his legal fees:

Djibouti businessman Abourahman Boreh cleared of corruption charges by London court

They actually first announced they were cancelling the DP World deal in 2016, but it was allowed to operate pending the resolution of the legal case. They lost that case last week and said fukk it let’s cease it

Djibouti always had majority stake over the port, but gave DP World management over it as part of the original agreement and it’s what they wanted to reverse after the Boreh fallout. Another point they’re trying to use as a loophole to annul the deal, is that it wasn’t approved by Parliament as per Djibouti law but who’s fault is that? It’ll be interesting to see how this ultimately ends, but IOG seems deadset on ensuring the UAE is shutout. I’m sure they will give the Chinese operating rights if they are able to get out without much compensation.

It’s also not hard to imagine similar disputes in the horizon in all of these simulatenous military base projects they got going on. IOG won’t live forever and if/when power changes hands there will be tons of international disputes to follow.

Boreh seems like a formidable breh

 

[ADevilYouKhow]

Ethiopia to join Somaliland, UAE port development venture

 

[RadaMillz]

Ethiopia to join Somaliland, UAE port development venture

That don’t look right at all

30 years of 30% ownership while foreigners own 70%.

I am not the most knowledgeable breh on this subject but how exactly is Somaliland benifiting from this? I support self sufficiency but not if it’s daylight robbery.

 

[ChatGPT-5]

Africa is undefeated in 2018. Tried to tell you lot what it was going to be in the future, but you kept on talking like we are infants, if only you knew. and there's more to come....

The Black Giant is rising....

 

[Secure Da Bag]

I’m sure they will give the Chinese operating rights if they are able to get out without much compensation.

Next step is self-determination. If you're taking operating rights from one foreign entity/country, then why give it to another? You should be operating it yourself. The shadow of colonialism is stretches far. Too far.

 

[Anhur]

Africa is undefeated in 2018. Tried to tell you lot what it was going to be in the future, but you kept on talking like we are infants, if only you knew. and there's more to come....

The Black Giant is rising....

That don’t look right at all

30 years of 30% ownership while foreigners own 70%.

I am not the most knowledgeable breh on this subject but how exactly is Somaliland benifiting from this? I support self sufficiency but not if it’s daylight robbery.

It's really obvious that Somaliland has an extremely corrupt government because the people will not benefit from this (10-20% will go to corrupt leaders),
but this is also the fault of the last Somali administration that allowed UAE to buy Berbera port.
The new administration has told UAE that this was a corrupt-illegal deal.
This whole deal just stinks of corruption. I really hope that the Bosaso and Hobyo ports don't do a similar deal.

 

[thatrapsfan]

It's really obvious that Somaliland has an extremely corrupt government because the people will not benefit from this (10-20% will go to corrupt leaders),
but this is also the fault of the last Somali administration that allowed UAE to buy Berbera port.
The new administration has told UAE that this was a corrupt-illegal deal.
This whole deal just stinks of corruption. I really hope that the Bosaso and Hobyo ports don't do a similar deal.

Both admins are bluffing, this one is just slicker at propaganda. The PM was literally in the UAE while this deal was announced, said nothing, then came back and started blowing smoke about how it was illegal.

 

[thatrapsfan]

That don’t look right at all

30 years of 30% ownership while foreigners own 70%.

I am not the most knowledgeable breh on this subject but how exactly is Somaliland benifiting from this? I support self sufficiency but not if it’s daylight robbery.

Any port in the North whether in PL or SL will have to rely on Ethiopia to become profitable. The whole reason the port is an attractive venture in the first place is because it would allow landlocked Ethiopia to reach export markets and vice-versa. Where else would the goods be coming from and going to? If Ethiopia is willing to spend to develop infrastructure in SL that's been rudimentary since the 70's, its a good deal. I dont get the point of obstruction for the sake of it, or just because Ethiopia's name appears on the deal. Ethiopia is never going to disappear and has a population of 100 million people, any path to prosperity for Somalia/SL/Djibouti will have to leverage that market.

 

[Anhur]

Both admins are bluffing, this one is just slicker at propaganda. The PM was literally in the UAE while this deal was announced, said nothing, then came back and started blowing smoke about how it was illegal.

Don't you think that there's a possibility that meetings went left? I don't think they would just call out the port deal as illegal if they were okay with it.
If Somalia doesn't have a functioning military and control of most of the coast by mid-2019, I'm willing to agree with you about this administration's corruption.

Any port in the North whether in PL or SL will have to rely on Ethiopia to become profitable. The whole reason the port is an attractive venture in the first place is because it would allow landlocked Ethiopia to reach export markets and vice-versa. Where else would the goods be coming from and going to? If Ethiopia is willing to spend to develop infrastructure in SL that's been rudimentary since the 70's, its a good deal. I dont get the point of obstruction for the sake of it, or just because Ethiopia's name appears on the deal. Ethiopia is never going to disappear and has a population of 100 million people, any path to prosperity for Somalia/SL/Djibouti will have to leverage that market.

1. I completely agree with you that Ethiopia will always be around and that they are a large market, but don't you think that it's stupid to give them a share of your port when they don't even have a port and their choices are very limited (Djibouti and reluctantly Kenya). 2. All Somaliland had to do to get more of Ethiopia's business was to lower the cost of using their ports instead of losing 19% of their own port to a desperate nation.
3. Ethiopia doing infrastructure work in Somaliland or Somalia is laughable. They can't build on their own land (the Chinese are doing it for them) but they are somehow going to build infrastructure for Somalis?

 

[thatrapsfan]

Don't you think that there's a possibility that meetings went left? I don't think they would just call out the port deal as illegal if they were okay with it.
If Somalia doesn't have a functioning military and control of most of the coast by mid-2019, I'm willing to agree with you about this administration's corruption.

1. I completely agree with you that Ethiopia will always be around and that they are a large market, but don't you think that it's stupid to give them a share of your port when they don't even have a port and their choices are very limited (Djibouti and reluctantly Kenya). 2. All Somaliland had to do to get more of Ethiopia's business was to lower the cost of using their ports instead of losing 19% of their own port to a desperate nation.
3. Ethiopia doing infrastructure work in Somaliland or Somalia is laughable. They can't build on their own land (the Chinese are doing it for them) but they are somehow going to build infrastructure for Somalis?

How would they lower the cost of business, without investing in the port's development? Where is the investment coming from? Ethiopia has access to significant international funding, while DP World has the UAE's backing. This investment would not be replicated if they went on their own, and they're not negotiating from a position of strength. An imperfect deal > stagnation and more of the status quo as the obstruction route suggests, unless those opposed propose a serious alternative. Even rudimentary work and investment on the road linking Berbera to Ethiopia would be an upgrade.

One question I do have is what the point/purpose of a competing port on Bossaso would be? Could that many ports largely serving the same market be viable? Some conspiracy theories suggest DPWorld is developing all these ports to stop them from competing with Jebel Ali, but I dont really buy this. Anyway itll be interesting to see how this goes.

 

[Anhur]

How would they lower the cost of business, without investing in the port's development? Where is the investment coming from? Ethiopia has access to significant international funding, while DP World has the UAE's backing. This investment would not be replicated if they went on their own, and they're not negotiating from a position of strength. An imperfect deal > stagnation and more of the status quo as the obstruction route suggests, unless those opposed propose a serious alternative. Even rudimentary work and investment on the road linking Berbera to Ethiopia would be an upgrade.

One question I do have is what the point/purpose of a competing port on Bossaso would be? Could that many ports largely serving the same market be viable? Some conspiracy theories suggest DPWorld is developing all these ports to stop them from competing with Jebel Ali, but I dont really buy this. Anyway itll be interesting to see how this goes.

1. Everything you wrote makes sense. 2. I understand your point, but Somaliland could've just lowered the cost of using their ports compared to the cost of Ethiopia using Djibouti's port (Somaliland doesn't need Ethiopia's investment in the port because UAE is already handling all the cost of building it). If you have a product and you lower the cost of your product, demand will increase. So all Somaliland had to do was lower the price of doing business and that would instantly attract Ethiopia.
3. As you said earlier, Ethiopia is home to 100 million people. Djibouti's port cannot handle that type of business. Ethiopia is desperately looking for ways to reach the international market because they're landlocked, so for Somaliland to give them a share of their port is preposterous in my opinion. An imperfect deal> stagnation, I agree with you 100%, but this deal is for 30 years, not 5 or 10! UAE getting the majority of Berbera port is imperfect, but Ethiopia getting 1/5th of the port for 30 years is just horrible. I'm sure that they could've made a much better deal.

I'm happy that Somaliland is getting a new port, a success for them is a success for all of us. The only thing I disagree with is Ethiopia getting a share of the pie. I hope that things work out in the best way.

 

[Akata Man Bromo]

Africa is undefeated in 2018. Tried to tell you lot what it was going to be in the future, but you kept on talking like we are infants, if only you knew. and there's more to come....

The Black Giant is rising....

Take us back

 

[FAH1223]

Yeah Djibouti had a simulatenous case against Boreh over the DP World deal that they also lost last year. Had to pay millions in his legal fees:

Djibouti businessman Abourahman Boreh cleared of corruption charges by London court

They actually first announced they were cancelling the DP World deal in 2016, but it was allowed to operate pending the resolution of the legal case. They lost that case last week and said fukk it let’s cease it

Djibouti always had majority stake over the port, but gave DP World management over it as part of the original agreement and it’s what they wanted to reverse after the Boreh fallout. Another point they’re trying to use as a loophole to annul the deal, is that it wasn’t approved by Parliament as per Djibouti law but who’s fault is that? It’ll be interesting to see how this ultimately ends, but IOG seems deadset on ensuring the UAE is shutout. I’m sure they will give the Chinese operating rights if they are able to get out without much compensation.

It’s also not hard to imagine similar disputes in the horizon in all of these simulatenous military base projects they got going on. IOG won’t live forever and if/when power changes hands there will be tons of international disputes to follow.

@thatknickfan @RadaMillz @Grano-Grano @Broke Wave @Prynce @BocaRear

 

[thatrapsfan]

@thatknickfan @RadaMillz @Grano-Grano @Broke Wave @Prynce @BocaRear

How will this be enforced in SL? Seems like theatre. My bet is the Berbera port construction will go on unabated. Also interested to see how PL reacts. There was also a third deal with Sharif Sakiin in Barawe with the DP World subsidiary. Doesn't seem like it was mentioned.