Garacad: the port Somali investors built

Where Xidig members may contribute

Learning and collaboration openings, not confirmed contracts or tenders:

• Learning from the model: how the port's investors pooled money, took decisions and got government approval is directly relevant to members planning shared projects.
• Power for the port and town: solar with storage is more likely at this scale than a 100 MW plant.
• Fish landing and cold storage: ice and chilling for a fishing port (see Cold chain for fish, milk and meat in Somalia).
• Logistics: livestock handling, warehousing and trucking to Galkayo.
• Local data: population, prices and power costs are missing from public sources.

Possible services, research, supplier or collaboration roles

• A case study: members who took part in the Garacad investment could share, with their consent, how it was organised.
• A solar-and-storage study for the port area.
• An ice plant serving boats that land at the port.
• Research: the status and funding of the Garacad–Galkayo road.

Who may find this useful

• Diaspora members from Mudug and central Somalia.
• Members interested in pooled or community investment.
• Port, marine and logistics professionals.
• Solar and electrical engineers.
• Fish and livestock traders.

What exists in Garacad today

Who built the port.

• Opening: the port was inaugurated on 22 October 2022. Hiiraan Online described it as a "community and privately-funded" project.
• Official description: the US State Department's 2025 investment climate statement says "Somali private investors completed the first phase of the Garacad Port in 2022". The Somali Ports Authority says it "is being developed through a Somali private-sector-led investment model".
• Developer: the engineering firms that reviewed the design name the developer as Wadaagsan Company. The company's own site says the venture was "undertaken with the approval of the government".
• Ownership: Xidig found no public information on how many investors hold shares, or on what terms.

Size and cost.

• Planned berths: before the opening, the developer told Bloomberg that the "first two deep-water berths" would take "40,000-ton container ships", with "Another two berths" to follow, as part of "a $531 million investment plan". The design engineers described the first stage as a new berth (Rendel, November 2022).
• August 2026 facilities: Kaab TV and Puntland Post both reported that Berth C had been added and Berth D was under development, and that cargo storage was opened.
• Traffic: Xidig found no throughput figures.

Planned cargo. The port's backers told Bloomberg they plan to handle livestock, fish, minerals and farm produce, with "refrigerated storage facilities and feeding grounds for animals". Bloomberg reported the aim of serving Ethiopia's south-eastern region; the developer's site also names central Somalia. These are plans, not observed trade.

Management talks. In June 2024 the port's investors were reported to be negotiating an investment in the port with a UAE-based company, described as a private firm not affiliated with the UAE government (Halqabsi). In July 2025 WardheerNews reported that the port would be handed to a UAE-based company, quoting Puntland's president as saying the discussions were solely between the port's investors and the Emirati company, and that the government stayed out of them. Xidig found no signed agreement. In January 2026 the federal government announced the cancellation of all agreements with the UAE, including at ports, and Puntland's administration said it rejected the decision (Middle East Eye, 12 Jan 2026); Xidig found no report on whether this affects Garacad.

Road inland.

• Foundation stone: in October 2022 the federal and Puntland presidents laid the foundation stone for Highway 3, linking Garacad, Galkayo and Galdogob (Puntland Highway Authority).
• Funding: a 2025 analysis describes a proposed 270 km corridor costing about US$216 million and refers to African Development Bank "backing". Xidig found no AfDB project document confirming financing.
• Status: Xidig found no evidence that the road is paved end to end.

Sea security. In April 2026 a cement carrier was hijacked "6 nautical miles (11km) northeast of the Somali coastal town of Garacad" (Al Jazeera). In March 2024 a hijacked Bangladeshi cargo ship anchored "20 miles off the Somalian port of Garacad" (The Daily Star).

Gaps. Xidig found no public figures for Garacad's population, electricity supply, water supply or fish landings. Garacad is among the sites of the World Bank's BADMAAL fisheries project (see Somalia's fisheries: vessels, processing and landing sites).

What this means.

• The government's proposals: they would add power, a fishing port and more berths to a port that Somali investors have already built. They do not say how they would work with its owners.
• What matters most for trade: the road inland and a power supply may matter more than new berths.

Geographic context

Fur cabbirka buuxa

Garacad is on the central Indian Ocean coast. Galkayo, the main inland trading town of Mudug, is shown for context; it is not a booklet site.

Garacad sits between Hobyo to the south and Eyl to the north. Its location on the central coast is why its backers see it as a route to central Somalia and eastern Ethiopia. That depends on the road through Galkayo.

Dependencies and implementation constraints

• The road to Galkayo and beyond.
• Power and water at the port and in the town.
• Agreement with the port's private owners for any upgrade.
• Government roles: the proposals are promoted by federal institutions, and the port and road are in Puntland.
• Maritime security along the coast.

Risks and unknowns

• Costs: none of the shared proposals gives a cost for Garacad.
• Investment figures: reported figures vary widely.
• Management: who will manage or invest in the port after the 2024–2025 talks.
• Demand: no traffic data to show demand for more berths.

Questions members should verify before acting

1. Who owns and manages Garacad port today?
2. How much cargo, and what kind, passes through it?
3. Is the road to Galkayo funded, and when would it be built?
4. How is the port powered?
5. How many boats land fish at Garacad?

What is confirmed, and what isn't

Confirmed

• The three proposals, their printed costs and their pre-feasibility stage.
• The port's opening in October 2022 and its private-investor model (US State Department, Somali Ports Authority).
• The foundation stone for the Garacad–Galkayo–Galdogob highway (October 2022).
• The April 2026 hijacking off Garacad.

Our interpretation

• The road and power matter more for trade than new berths.
• The port's investment model is a useful example for members.

Not yet verified

• The port's ownership structure and total investment.
• The outcome of the management talks.
• The specifications of the berths added since 2022.
• Any data on the town's population, power, water or fish catch.

Relevant next steps

• Follow the Puntland Highway Authority for the road.
• Garacad and Mudug members: share what you know about the port's trade, power and fishing through Xidig.
• Note your skills and location in Xidig so groups working on central Somalia can find you.