BOSASO – The port of Bosaso, the economic lifeline of Puntland, remains closed for a ninth consecutive day as a dispute between DP World, the Emirati operator, and local traders over increased service fees escalates, paralysing trade and raising concerns about supply shortages.
According to local sources, the port has been shut since July 1 after traders refused to accept new charges imposed by the Dubai-based company, which they described as excessive and incompatible with the economic realities of the region. DP World has so far shown no sign of backing down, deepening the standoff. The port, a critical hub for imports and exports, has seen no commercial activity since the closure began.
The closure comes amid heightened tensions over the port’s management, with Puntland authorities having previously highlighted the strategic importance of the port for the region’s economic growth and regional trade. The port’s expansion was expected to increase its capacity to handle larger volumes of goods.
A Decade of Disputes and Broken Promises
The current crisis is the latest in a series of conflicts between DP World and the business community of Bosaso. Traders have long complained that the company, which has managed the port for nearly a decade, imposes high fees without delivering the promised expansion and modernisation. The company’s record has been marked by operational disruptions and allegations of neglect.
The Economic Impact of the Shutdown
The closure has dealt a severe blow to Puntland’s economy. The port is the main entry point for essential goods, and the halt in operations is already causing supply shortages and price hikes. Traders and consumers are feeling the pinch, with no resolution in sight. The impact is particularly acute in a region dependent on imports for food, fuel, and construction materials.
A History of Conflict at Bosaso Port
The current dispute mirrors previous standoffs at the port. In 2017, a similar conflict over fee increases led to a week-long closure that triggered protests and left at least one person dead. The current crisis suggests that the underlying issues between DP World and the local business community remain unresolved, raising doubts about the long-term viability of the company’s presence in Bosaso.
Federal-State Tensions Complicate the Crisis
The dispute is further complicated by the ongoing rift between the Federal Government and Puntland over control of the port. Puntland has consistently asserted its authority over the Bosaso Port deal, rejecting federal attempts to cancel agreements with the UAE. The federal government’s stance, which Puntland described as “baseless,” has only added to the uncertainty surrounding the port’s future. The Puntland administration has accused President Hassan Sheikh Mohamud of using the diplomatic row to distract from domestic political failures.
Way Forward
As the closure enters its second week, the pressure is mounting on both sides to reach a compromise. The longer the port remains shut, the more severe the economic consequences will be for Puntland. The Puntland government has yet to issue a public statement on the dispute, and no mediation efforts have been announced. The standoff underscores the fragility of the region’s critical infrastructure and the need for a more sustainable and transparent management model. Without a swift resolution, the crisis risks deepening, further destabilising an already fragile economy.
