Friday , 20 September 2019
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DP World warns others over Djibouti involvement

DP World has warned other terminal operators against involving themselves at the Port of Djibouti following its eviction from the facility.

DP World was removed from Doraleh Container Terminal (DCT) by the Djiboutian government earlier this year but the Dubai-based operator said that the concession agreement remains valid, and as such it still holds exclusivity rights at the facility.

In a statement DP World said: “Take notice that DP World and DCT are the lawful holders of rights in respect of the ownership and operation of the container shipping terminal at Doraleh, Djibouti, and will pursue all available legal recourse, including claims for damages, against any other entities that tortiously interfere or otherwise violate their rights with respect to the Concession Agreement.

“The Concession Agreement was recently upheld as a valid and binding contract under English law by a distinguished tribunal of arbitrators under the auspices of the London Court of International Arbitration or LCIA, which rejected the Government of Djibouti’s attempt to rescind the Concession Agreement based on false allegations of corruption.”

The Djiboutian government cited DCT’s poor performances when it seized control, and has claimed it had the legal right to assume management.

Aboubakar Omar Hadi, chairman of the Djobouti Ports and Free Zone Authority (DPFZA), told Reuters that the government was in talks with CMA CGM about the construction and management of a new terminal at the Port of Djibouti.

Hadi said the new Doraleh International Container Terminal would add 2.4m teu to the facility, bringing the total to 4m teu, with an initial cost of US$600m.

He also said DPFZA hoped to award the concession for the new facility by July and added that the authority wished to buy out DP World’s 33% share in DCT to avoid further arbitration proceedings.