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Djibouti government continues legal action to oust DP World from port

THE Government of Djibouti plans to apply to the country's high court to declare null and void five international adjudications on the Doraleh Container Terminal that found in favour of DP World

Djibouti government continues legal action to oust DP World from port

THE Government of Djibouti plans to apply to the country's high court to declare null and void five international adjudications on the Doraleh Container Terminal that found in favour of DP World

06 August 2019 - 19:00

THE Government of Djibouti plans to apply to the country's high court to declare null and void five international adjudications on the Doraleh Container Terminal that found in favour of DP World.

The legal action is directly linked to the Djibouti government's cancellation of DP World's 2006 concession agreement to operate Doraleh container terminal, and subsequent awarding of a new concession to China Merchants Port Holdings.



'The move is proof of Djibouti's complete disregard for recognised legal practice and respect for contracts calling into question any investment in the country both now and in the future,' DP World was quoted as saying in a report by Colchester's Seatrade Maritime News.



Under the concession agreement DP World held a 33.34 per cent stake in Dorelah Container Terminal SA with the country's government controlling the remaining 66.66 per cent stake. The government of Djibouti seized the terminal in February 2018 as a four-year dispute dragged on over allegations that DP World had not meet the terms of the concession agreement.



The most recent London Court of International Arbitration (LCIA) tribunal ordered Djibouti to pay DCT US$385.7 million plus interest for breach of DCT's exclusivity by development of container facilities at Doraleh Multipurpose Terminal.



'DCT and DP World continue to seek to uphold their legal rights in a number of legal fora, following Djibouti's unlawful efforts to expel DP World from Djibouti and transfer the port operation to Chinese interests,' said DP World.



The Dubai-headquartered terminal operator is also continuing litigation against China Merchants in the Hong Kong courts.


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