US embassy cable - 04DJIBOUTI1034

UNCLAS DJIBOUTI 001034 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR AF, AF/E, AF/EPS, AND NEA/ARP 
 
E.O. 12958: N/A 
TAGS: BA, DJ, ECON, EFIN, ET, ETRD, PGOV, PREL, TC 
SUBJECT: MARKED PROGRESS AT DORALEH PORT; U.S. NAVY SIGNS 
FURTHER CONTRACTS 
 
REF: A. DJIBOUTI 856 
     B. DJIBOUTI 822 
     C. DJIBOUTI 711 
     D. DJIBOUTI 597 
 
1. (SBU) SUMMARY: Progress continues on schedule at the 
Doraleh port with the completion of the causeway and 70 
percent completion of the medians. THE U.S. Navy recently 
contracted two additional storage tanks, two outbuildings for 
storage of drums and diving equipment and a facility for 
security dogs. END SUMMARY 
 
2.(U) The Ambassador, accompanied by the acting Poloff and 
the Economic Assistant, paid a follow-up visit to Doraleh 
port on July 28. Host for the visit was K.K. Menon, site 
manager of the project for Emirates National Oil Company 
(ENOC). 
 
3. (SBU) The port showed marked progress in completion of the 
1080-meter causeway, the outer walls and the storage tank 
areas. Menon is confident that the U.S. Navy's four fuel 
storage tanks, edible oil tank, deblasting tank and asphalt 
tank will be ready on or before the contractual deadline of 
June 2005. Accord to Menon, the U.S. Navy has also contracted 
with ENOC to build two outbuildings for drum storage and 
diving equipment and a facility for security dogs. The 
350-meter ship jetty and the oil terminal will also open in 
June 2005, with the container portion of the port to follow. 
 
4. (U) Construction at the port site recently moved to 
round-the-clock and an additional 200 employees will arrive 
at the site next month, bringing the total of ENOC 
contractors to 450. About 90 percent of the materials 
necessary for the oil terminal have also arrived. The 
exception is an integral generator part from U.S.-based 
Caterpillar, Inc. for which delivery will take up to a year. 
Menon expressed dissatisfaction with the delay but has made 
provisions to put in place a temporary part for the generator 
in order not to affect the terminal's opening. 
 
5. (SBU) Although the U.S. Navy remains the only contracted 
storage tank lessee at the port thus far, Menon told the 
Ambassador that ENOC has been contacted by Shell Oil about 
erecting tanks that will stand separate from the rest of the 
oil terminal. Total, according to Menon, would use tanks 
currently under construction in a shared area. He said he was 
not been contacted by Mobil. 
RAGSDALE