NAIROBI, Kenya, Mar 19 – DP World, a major Dubai-based port operator, said on Tuesday it would continue its legal fight over the Doraleh Container Terminal (DCT) in Djibouti, calling the government’s recent actions a “blatant disregard for the rule of law.”
The statement comes after Djibouti announced on September 10, 2023 that it would seize all shares held by the Port of Djibouti, S.A. (PDSA) in the DCT.
This escalation follows a British court upholding a previous ruling by the London Court of International Arbitration (LCIA) which deemed the concession agreement between Djibouti and DP World to be legally binding.
DP World held a 33.33 percent stake in the DCT company that has operated Doraleh since 2006.
Djibouti had previously taken control of the DCT in February 2018, arguing that the concession agreement unfairly favored DP World.
“In an apparent attempt to circumvent the injunction, on 9 September 2018, the Government of Djibouti transferred PDSA’s shares in DCT to itself. The new decree was accompanied by a press release replete with untrue statements. It also refers to DP World being paid fair compensation in accordance with international law,” the company said in a statement.
DP World challenged Djibouti’s recent acquisition of shares in a key container terminal, calling it a violation of a recent High Court ruling.
In the statement, DP World said the move was the latest chapter in a five-year dispute with the Djiboutian government over control of the terminal.
The company emphasized that the 2006 Concession Agreement stipulates English law and mandates binding arbitration through the London Court of International Arbitration for any disagreements arising from the pact.
“Such arbitration proceedings are ongoing. To date the Government has not made any offer to compensate DP World,” it stated.
