Dubai Ports investing $300m in Djibouti

djibouti - dubai ports international (dpi), the international division of ports, customs and free zone corporation (pcfc) is investing $300 million to develop the new container terminal in doraleh, djibouti, and is also planning to develop the djibouti international airport free zone.


according to sultan bin sulayem, executive chairman of pcfc, who spoke to this correspondent after the official inauguration of djibouti free zone (dfz), on saturday, the feasibility studies are underway and the master plan of the new container port will be submitted to the president of djibouti early next year. the construction will start as soon as the plan is approved by the government of djibouti.

last year the djibouti port, which has been managed by dpi since 2000, recorded the highest ever 242,705 teus (twenty feet container units) compared to 177,954 teus in 2002, while the bulk cargo in 2003 achieved 4.5 million ft against 3.5 ft during the previous year. dfz was officially inaugurated by the president of djibouti, ismail omar guelleh. speaking to khaleej times,the president said: "our vision for djibouti in the coming 10 years is to create a free economic zone in the country trying to replicate the success of dubai."

strategically located on the african horn between the red sea and indian ocean, dfz is first of its kind in africa and is considered as an ideal gateway to the african continent and is expected to develop rapidly in the coming years. investors will be free to capitalise on djibouti's location for warehousing, storage and distribution activities.

they can also undertake light manufacturing and value-added activities to benefit from comesa rules of origin, as well as the agoa trade agreement. the incentives and benefits offered by dfz will replicate those at jebel ali, including 100 per cent foreign ownership, no corporate taxes, no import duties, 100 per cent repatriation of capital and profits and others.

the djibouti parliament recently passed the djibouti free zone act of 2004, which greatly enhances all these benefits for new international investors to establish an african hub in the free zones in the country. through this initiative, the free zone is expected to attract direct foreign investments and generate new port and airport traffic.

according to mohammed sharaf, managing director of dpi, jebel ali free zone international's 30-years contract with djibouti dryport safz to manage its free zone, which covers 17 hectares is a renewable contract. he said: "we are aiming ar creating a strong logistical free zone similar to jebel ali free zone to serve the african continent."

he said that prior to the official opening of the dfz, some 58 per cent of the existing warehouse has been leased, with a further eight per cent under option, adding that 45 per cent of the available land is leased with another 17 per cent under option. some 46 per cent of the current investors are from dubai, 46 per cent from djibouti and eight per cent from ethiopia.

he also said that due to the current high demand for quality facilities and services on the african continent, the project owners are launching phase ii of the development by constructing an additional 34 lease warehouse units, a 9,100 square metres short storage warehouse for humanitarian aid cargo and a new 64-unit office complex for the trading and service sectors.

"within three years, we plan to start phase iii, which will include an additional 25 warehouse units and another 64-unit office building. by the time the dfz is full, we hope to have doraleh project well under way," he said.