DP World warns against violation of disputed deal

12 July 2018
Djibouti recently opened Chinese-built free trade zone close to Doraleh Port

Dubai-based DP World says that the Djibouti government’s "illegal" seizure of the Doraleh Container Terminal does not give any third party the right to violate the terms of the 30-year concession agreement it signed with the government in 2006.

The ports operator issued the statement in response to the reported opening of the first phase of the Chinese-built Djibouti International Free Trade Zone, which is located close to all of Djibouti's major ports.

A DP World spokesperson warned that the firm "reserves the right to take all available legal actions, including claims for damages against any third parties that interfere or otherwise violate its contractual rights."

In February, DP World filed a new arbitration case in London against the government of Djibouti, which it has accused of illegally seizing control of the Doraleh Container Terminal, which it designed, built and has been operating since in 2006. DP World is still awaiting the outcome of the arbitration process.

DP World said they are seeking to secure damages and compensation for the expropriation of the terminal.

MEED understands DP World has a 33 per cent equity stake in the port of Doraleh, which has a capacity of 1.25 million twenty-foot equivalent units (TEUs).

The Djibouti government began making corruption allegations against DP World in 2014.

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