P&O Ports, owned by the Government of Dubai, has won a 30-year concession for the management and development of a multi-purpose port project at Bosasso in the Puntland state of Somalia.
Investment in the facilities is expected to be about $336 million divided into two phases, state news agency WAM reported on Thursday.
Work on the project will involve building a 450m quay and a 5 hectare back up area, dredging to a depth of 12m with reclamation work using dredge spoil, it said.
There will also be major investment in an IT and terminal operating system, mobile harbour cranes and container handling equipment, it added.
President of Puntland, Abdiweli Mohamed Ali, said: "This investment is a huge undertaking in Puntland and will greatly contribute to the infrastructure development in Somalia.
"Infrastructure development is a priority for the government of Puntland as it underpins the efforts of taking this country forward."
Sultan Ahmed Bin Sulayem, Ports, Customs & Freezone Corporation (PCFC) chairman, added: "The Port of Bosaso is a unique opportunity to enter into a multi-purpose port that is transitioning to containerisation in a country that is growing strongly as it enters a period of sustained peace."
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The Port of Bosaso is located in Puntland State of Somalia, 2,000km north of Mogadishu. It occupies a strategic location for maritime transport in the Gulf of Aden at the southern approach to the Red Sea and Suez Canal.