Independent expert estimates the ongoing dispute has cost Dubai-based DP World more than $1bnby Gavin Gibbon Jan 14th 2020 · 1 min read
Independent expert estimates the ongoing dispute has cost Dubai-based DP World more than $1bn
The ruling by the tribunal said Djibouti had acted illegally when it forcibly removed DP World from management of the terminal in February 2018,
DP World has won a sixth legal ruling in its ongoing battle with the Government of Djibouti over the Doraleh Container Terminal.
A tribunal of the London Court of International Arbitration ordered Djibouti to restore the rights and benefits under the 2006 Concession Agreement to DP World and Doraleh Container Terminal SA within two months, or pay damages.
An independent expert has estimated the losses to Dubai-based DP World at more than $1 billion.
The ruling by the tribunal said Djibouti had acted illegally when it forcibly removed DP World from management of the terminal in February 2018, claimed it had terminated the concession agreement and transferred the terminal assets to a state-owned entity.
Doraleh Container Terminal (DCT), a Djibouti port operator owned 33.34 percent by DP World Group, and 66.66 percent by Port de Djibouti, an entity of the Republic of Djibouti, has been successful in five previous rulings over the last three years by the London Court for International Arbitration in London and the High Court of England and Wales.
The most recent decision, in March last year, found that by developing new container port opportunities with China Merchants Port Holdings Co Limited, a Hong-Kong based port operator, Djibouti has breached DCT’s rights under its 2006 concession agreement to develop a container terminal at Doraleh.
A statement from DP World, said: “The latest tribunal ruling is the sixth substantive ruling in DP World's favour in the London Court of International Arbitration and the High Court of England and Wales. To date all have been ignored by Djibouti despite the original contract for the concession being written under and governed by English law.”
The Doraleh Container Terminal is the largest employer and biggest source of revenue in the country and has operated at a profit every year since it opened.
“DP World now awaits proposals from Djibouti about how it intends to comply with the latest legal ruling. If Djibouti does not comply with the ruling, the tribunal has stated it will proceed to issue an award of damages,” the statement added.
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