The newly elected president of the Puntland state of northeast Somalia has signed a deal with the China Civil Engineering Construction Corporation (CCECC) to build a port in the Red Sea town of Eyl.
The deal was signed by President Said Abdullahi Deni in Beijing on Friday, during a trade visit to China.
CCECC has previously undertaken a number of projects in the region, including airports in Bosaso and Galkoya, as well as a toll road between Eyl and Dangorayo.
China has been negotiation with Puntland authorities for the past three years over infrastructure deals in exchange for financial aid and investment.
The State of Puntland, which has the lowest rate of poverty in Somalia, has a 1,600km of coastline. Eyl is one of the chief fishing hubs in Somalia, where tuna, lobster and other high value seafood is harvested for domestic and international markets.