Dubai Customs World yesterday signed an agreement to establish and operate an automobile and heavy equipment free zone in Djibouti.
DC World has acquired 570,000 square metres of land set aside specially for the purpose of locating the Special Economic Zone.
The agreement to develop and manage the Djibouti Automobiles and Heavy Equipment Zone (Dahez) was signed by DC World CEO Hamad Mohammed Fadhel Al Mazrooei and Djibouti's Minister of Finance Ali Farah Assoweh.
The plan was first proposed by DC World earlier this year with the strategic goal of creating a much-needed transport service infrastructure to support Djibouti's pivotal role as the commercial gateway to East African hinterland.
The first phase will include about 100 showrooms for cars, and trucks, and heavy equipment, warehouses, workshops and huge parking lots for the vehicles.
Among the facilities the DC World plan outlines for Dahez are such services as customs operations, vehicle auctioning and accessories, leasing, insurance, registration services, banking, shipping agencies and retail food outlets.
The proposed automotive zone will serve as the pit-stop for thousands of heavy vehicles that transit through Djibouti every day, carrying cargo and containers from the country's ports to neighbouring Ethiopia. This traffic is gradually expected to increase as the Free Trade Area agreement among the Common Market for South and East Asia (Comesa), including Djibouti, is implemented in the years ahead.
Located strategically at the southern entrance to the Red Sea, Djibouti's modern port has emerged as the transit route of choice for goods headed for east and central African countries.
Al Mazrooei said: "Dahez will compliment the sophisticated facilities already built and operated by DC World and our sister companies.
"We believe the automotive zone is a vital infrastructure link in the supply chain network the Government of Djibouti has been putting together with commitment for the past six years."
© Emirates Today 2007
