Djibouti rejects court ruling on DP World dispute

Djibouti rejects court ruling on DP World dispute

The Djibouti government has refused to recognise a London court ruling which ruled in favour of Dubai-based port operator DP World in a dispute over the Doraleh Container Terminal.

Last week, the London Court of International Arbitration ruled that DP World’s concession agreement for the container terminal is valid and legally binding and confirmed that the Djibouti government’s action of seizing control of the terminal was illegal.

The Djibouti government said on Friday that it does not recognise the arbitral award which consists in qualifying the law of a sovereign state as illegal.

“It disregards the sovereignty of the Republic of Djibouti and takes no account of public international law rules,” the Djibouti government said.

In a response to the statement by the Djibouti government, DP World said the government’s statement demonstrates that Djibouti does not recognise the international rule of law.

”As the court has held, Djibouti does not have sovereignty over a contract governed by English law. It is well established that, in the absence of an express term to that effect, an English law contract cannot be unilaterally terminated at will. The contract therefore remains in full force and effect,” DP world said in a statement.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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