Middle EastPorts and Logistics

DP World steps up attack on Djiboutian government

Global terminal operator DP World is not giving its rights to a port concession in Djibouti lightly.

Yesterday, the Dubai-headquartered company DP World reiterated claims that its concession agreement for the Doraleh Container Terminal (DTC) remains in force, warning that the government’s “illegal” seizure of the facility doesn’t give the right to any third party to violate the terms of the concession agreement.

DP World’s statement came in the wake of news reports on the opening of the first phase of the Chinese-built International Free Trade Zone, after the government in Djibouti scrapped DP World’s exclusive management rights in February this year.

A DP World spokesperson said: “This is yet another clear example by the Djiboutian government of violating its contractual obligations and the rights of foreign investors.”

DP World has commenced an arbitration against the government of Djibouti before the London Court of International Arbitration and is awaiting the outcome of this process.

DP World won the concession in Djibouti 12 years ago. Last December the government in Djibouti started to try and get DP World to renegotiate its contract but the Dubai company did not acquiesce to these demands and was kicked out of the country in February.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
Back to top button