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Djibouti's ambitious maritime infrastructure program

28K views 61 replies 17 participants last post by  Ras Siyan 
#1 · (Edited)
This thread will cover Djibouti's investment package to upgrade its port & related infrastructure. The plan includes:

- Construction of 3 new ports at Tadjoura, Goubet & Damerjog

- An oil terminal to export South Sudan's oil

- 1 LNG terminal

- Largest Ship maintenance yard in East Africa in Obock

- Creation of a national shipping company


- 2 new free zones



As well as expanding the existing facilities with:


- More than doubling the size of the Doraleh port complex

- Redeveloping the Djibouti port

- 30% increase in the current oil terminal's capacity


The deadline for the completion of all these projects is 2017 to coincide with Djibouti's 40th independence anniversary. When completed, the country's port handling capacity should increase 15 folds






Djibouti to Raise $5.9 Billion From Investors for Infrastructure


Djibouti is in talks with India, China, Brazil, Russia and Arab investors to finance infrastructure projects worth $5.9 billion, the head of the country’s ports authority said.

The Horn of Africa nation, which is seeking to become a middle-income nation by 2035, plans to develop rail links, ports, and oil and gas pipelines, Djiboutian Ports and Free Zones Authority Chairman Aboubaker Omar Hadi said in an interview today. Commitments for “close to 57 percent” of the project costs have already been received from China, India, a Saudi Arabian fund and other investors, he said in London.

The projects include a doubling of capacity at the Doraleh container port to 3 million containers a year by 2015, according to documents distributed by the Djiboutian government at a conference in London. That would rank it as the continent’s biggest such facility, it said.

Djibouti, which hosts about 2,500 U.S. military personnel at the Camp Lemonnier military base, has a $1.1 billion economy with fewer than 1 million people. The economy relies on services related to the country’s strategic location on the Red Sea, one of the world’s busiest shipping lanes.

Economic growth in Djibouti averaged 5 percent from 2006 to 2012, compared with 2.5 percent from 2001 and 2005, Ahmed Osman Ali, governor of Djibouti’s central bank, said at the conference.

Six Ports

The country plans to create six ports to handle commodity exports, according to Hadi.

In addition to the expansion of Doraleh, Djibouti plans to build a facility at Tadjourah, with the first phase being funded by the Saudi Fund for Development and the Arab League’s Kuwait- based Arab Fund for Economic and Social Development at a cost of $80 million. A second phase of development will begin in 2015 and cost $90 million, the government said.

Last month, construction began on another port at Ghoubet that will provide for the export of salt and gypsum deposits from Lake Assal. The lake is the site of the world’s largest undeveloped salt reserve, according to Salt Investment SA, a unit of Washington-based Emerging Capital Partners. Chinese funding of $64 million has been secured for the port, the government said.

Talks are under way for $600 million oil refinery that will allow for the import of crude oil from South Sudan by pipeline, the government said. The finished products will be sold in East Africa.

South Sudan signed an agreement with Ethiopia and Djibouti to build an oil pipeline that would reduce its dependence on crude shipments via neighboring Sudan. The two Sudans came to the brink of war last year amid a dispute over processing and transport fees.

LNG Terminal

Plans for a $2.6 billion liquefied natural gas terminal in Djibouti, including a liquefaction plant and a pipeline, will enable the export of 10 million cubic meters of gas from Ethiopia to China annually from 2016, the government said.

Brazil and Russia are mainly interested in financing the oil pipeline from South Sudan, a gas pipeline and rail links with Ethiopia, Hadi said.

Negotiations have started with the two nations for “concessional loans” of about $1 billion to be repaid at an annual interest rate of 3 percent over 25 years, Hadi said. Brazil’s commitment “is not yet finalized,” he said.
source


Djibouti finalising finances for new ports

By Beatrice Gachenge

NAIROBI (Reuters) - Djibouti's port authority is close to securing $4.4 billion from international banks to finance the building of five new ports in the next four years to meet growing demand for trade boosted by South Sudan's gaining of independence.

The horn of Africa nation's main port primarily serves its landlocked neighbour Ethiopia, which accounts for about 70 percent of traffic, but began handling landlocked South Sudan's trade after the country seceded from Sudan in July.

Traffic through the port, run by Dubai's DP World, the world's third-largest port operator, is seen as a key economic indicator for the region as a whole. DP World also runs the Doraleh Container Terminal, with an annual handling capacity of 1.2 million TEUs (20-foot equivalent units).

"Our total investment in the port and marine services related business is $4.4 billion for the five ports and dry dock development and free zones," Aboubaker Omar Hadi, chairman of the Djibouti Ports and Free Zones Authority told Reuters.

"We have secured up to 85 percent. We are discussing with our traditional lenders. We are hoping to conclude and finalise the issue of financing in the coming weeks," he said, speaking on the sidelines of an infrastructure conference in Kenya's capital, Nairobi.

Hadi said that besides loans from China, Brazil and the Africa Development Bank (AfDB), the port would be financed up to 35 percent from internal revenues.

Some of the new ports will include Tadjourah, located on the north coast of Djibouti is expected to handle 4 million tonnes of potash exports a year and Port of Goubet will have a capacity of 4.5 million tonnes a year of salt exports both by end of 2013.

Funds for another, the Damerjog livestock port, and phase II of Tadjourah are yet to be secured, Hadi said.


BE LIKE TANGIER, DURBAN PORTS


Djibouti's container port handled 705,000 TEUs in the whole of 2011 and that will rise further this year.

"We are going to end this year with 900,000 TEUs, so we hope by mid-2013 Djibouti will be the third African port to cross the 1 million TEUs, after Durban and Tangier in Morocco," Hadi said.

The tiny red sea nation also plans to handle cargo from other landlocked countries in the east African region as well as parts of southern Africa, taking advantage of congestion at Kenya's main port, Mombasa.

"What we are expecting in terms of (total) throughput in South Sudan volume currently, is 6.5 million tonnes," Hadi said, referring to the potential trade of South Sudan.

"Out of the 6.5 million tonnes, we are planning to move through Djibouti, 70 percent. This would be 15-20 percent of the total volume of Djibouti port," he said, adding it would be achieved in the next 12 months.

South Sudan, building from scratch after years of civil war with the north, raised its shipment volumes through Kenya's port in 2011 by 87 percent, becoming the second biggest user of the Mombasa port after Uganda.

Djibouti, located on one of the world's busiest maritime sea routes, hosts France's largest military base in Africa plus a major U.S. base, and the port is used by foreign navies patrolling busy shipping lanes off the coast of Somalia to fight piracy.

The country also plans to double its main port's container capacity to 3 million TEUs in the next two years, after a $330 million expansion.

"We are on the feasibility study ... and it will be completed by May this year, after that we will decide when we are going to start construction," [/B]said Hadi.
source
 
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#62 ·
The expected economic impact of the international free trade zone of Djibouti:

  • A contribution of 200 million dollars to the GDP or 11% of GDP in the first phase of 2.4 KM2

  • 12,000 jobs created by the first phase

  • A contribution of $2.5 billion to $4 billion when all phases are completed

  • Creation of 350,000 jobs when all phases are completed
For more info, visit the thread
 
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