Ports and Logistics

DP World warns investors must think twice about investing in Djibouti

Global terminal operator DP World is not giving up in its fight for its concession of a box terminal in Djibouti, warning other businesses to be wary about investing in the East African nation.

Eleven days ago Djibouti nationalised the Doraleh Container Terminal (DCT) on the Red Sea, having kicked DP World out of the country earlier this year in a bitter dispute.

Last month the Djibouti government refused to recognise a London court ruling which ruled in favour of Dubai-based port operator DP World in a dispute over the terminal.

DP World had had a concession in Djibouti since 2006. The government in Djibouti had tried to get DP World to renegotiate its contract since last December. In February the government terminated DP World’s contract.

“Investors across the world must think twice about investing in Djibouti and reassess any agreements they may have with a government that has no respect for legal agreements and changes them at will without agreement or consent,” a DP World spokesperson said in a release yesterday, signaling the terminal operator’s intent to pursue its fight against the Djibouti government.

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.


  1. International laws does not infringe a sovereign nation law as seems the original concession had some irregularities and decisions were taken within limited people and kept blind eye in the eyes of sovereign nation laws to say no parliament review/approval were thoroughly cross-examination carried out.

    However, the concession was made still under scrutiny but if a sovereign nation somehow decides to be nationalized some private invested instruments due to some historical irregularities against the wider society benefits.

    Therefore, the nation in question here has got an eligibility power to be harmonized the assets nationalized inline with international laws, also this norm has been practiced/executed throughout the history without exception in Djibouti but there should be paid a complete indemnification towards the invested business owners both majority and minority (DP World) shareholders.

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