JidbaaleGalmudug President Ahmed Abdi Kariye’s ‘Qoor Qoor’ signed a contract with Turkish company Metag Holding for the construction of Hobyo Port on Monday. He observed that the port may convert Somalia’s central coastline into a pivotal commerce center. Federal officials, legislators, and business executives attended the gathering in Mogadishu.
Qoor Qoor emphasized the strategic significance of Hobyo Port, especially for Ethiopia, which is devoid of a seaport and depends on Djibouti for 90% of its trade. Ethiopia lacks a port, and Hobyo presents a significant commercial potential. The issues we confront will be rectified soon, and Hobyo will become one of the major ports in Somalia, servicing various cities throughout the nation,” Qoor Qoor stated.
Metag Holding, a Turkish firm created in 1967, has substantial expertise in infrastructure development in Africa, including projects in Somalia, Djibouti, and Kenya. Renowned for its proficiency in maritime building, Metag has established a reputation for providing docks, piers, and coastal amenities.
Metag’s expertise in Somalia includes the development of military installations, airstrips, and water delivery infrastructures.
The port’s construction is anticipated to alleviate congestion at Mogadishu’s overloaded port, dispersing traffic and enhancing efficiency across Somalia’s marine trade network. The project is also intended to offer major economic advantages to Galmudug, generating employment, upgrading infrastructure, and promoting local companies. Hobyo will serve as a crucial export hub for Somalia’s livestock and agricultural products, aiding farmers and merchants in the area.
Infrastructure remains an issue. The highways linking Hobyo to large interior towns like Galkayo are in poor shape, hampering the port’s potential to convey products rapidly. Resolving these difficulties is crucial to guaranteeing Hobyo’s long-term viability as a commercial center.
Hobyo’s strategic location along vital sea routes between the Middle East, Asia, and East Africa placed it at the core of a booming commercial network. In 2019, the port inked a $170 million investment with the Qatari government via its state-owned port firm, Mwani Qatar, to create new cargo-handling facilities, docking stations, and improved road networks to link Hobyo with interior markets. In November 2020, the Galmudug State administration inked a contract with a UK-based consortium, Oriental Terminal, comprising Turkish, British, and Somali enterprises to develop and manage the Hobyo Port. The 2020 deal followed previous rumors that $90 million from Somali businessmen will finance the project as a public-private enterprise. It looked to mark the end of Qatar’s engagement.
The building of Hobyo Port has been a priority for Galmudug’s administration and is considered a critical step in the region’s economic growth. The president emphasized his administration’s devotion to accomplishing this long-anticipated ambition, which he characterized as a vital desire for the people of Galmudug.
President Qoor Qoor also urged on investors and enterprises to capitalize on the potential of Hobyo Port, stressing that the final agreement represents the beginning of a new era for the region’s trading capacities.
