Local News

Djibouti ordered to immediately restore DP World its rights and benefits under container terminal concession

Jan 16th · 1 min read

A Tribunal of the London Court of International Arbitration has ordered Djibouti to restore the rights and benefits for the Doraleh Container Terminal (DCT) to DP World and Doraleh Container Terminal SA within two months or pay damages

The ruling of the Tribunal said that the government of Djibouti had acted illegally when it forcibly removed DP World from management of the terminal in February, claimed it had terminated the 2006 concession agreement and transferred terminal assets to a state-owned entity.

The London Court of International Arbitration and the High Court of England and Wales have ruled in DP World’s favour, including the latest tribunal ruling, six substantive times.

However, Djibouti has ignored all of these to date despite the original contract for the concession having been written under and governed by English law.

DCT is the largest employer and biggest source of revenue in Djibouti, having operated at a profit every year since it opened.

An English court found that the DCT had been “a great success” for Djibouti under DP World’s management.

DP World has a portfolio of 78 operating marine and inland terminals and is a leading enabler of global trade, operating multiple related businesses.

last updated: 2020-01-16@14:01