Freight News, Sea

Djibouti in tussle with DP World over terminal

[ February 26, 2018   //   ]

DP World said on 23 February that the Government of Djibouti had “illegally seized control” of Doraleh Container Terminal which it had designed, built and operated since 2006 under a concession.

DP World described the Djibouti government’s move as the culmination of a campaign to force it to renegotiate the terms of the concession. However, it terms were found to be fair and reasonable by a London Court of International Arbitration tribunal led by Lord Leonard Hoffman and Sir Richard Aikens, both highly respected former English jurists, it added.

The state-of-the-art Terminal is the country’s largest employer and biggest source of revenue in the country. It has operated at a profit every year since it opened.

DP World has started arbitration proceedings before the London Court of International Arbitration.

In a statement, the Djibouti Ports & Free Zones Authority said it had taken the action in light of “the recent poor performance’’ of the port and “to rectify irregularities in the agreement covering its operation.”

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