DJIBOUTI?s government has decided to sieze or 'nationalise' shares held by the Port of Djibouti (PDSA) in the Doraleh Container Terminal (DCT), it said in a statement, in the latest twist in a dispute dating back to at least 2012, Reuters reports.
?The Republic of Djibouti, has decided to nationalise with immediate effect all the shares and social rights of PDSA in the DCT company to protect the fundamental interests of the nation and the legitimate interests of its partners,?the presidency said in a statement.
The government of Djibouti seized the Doraleh Container Terminal from Dubai's DP World in February over this dispute.
A London court has said DP World's contract to run the terminal was still valid.
The Port of Djibouti, PDSA, is itself majority-owned by the Djibouti state and in turn owns a two-thirds stake in the container terminal, while DP World owns the other third.
However, Djibouti said that the terminal had 'de facto' come under control of DP World, despite its minority stake.
By directly nationalising the stake owned by PDSA, Djibouti would ensure the government's control over the terminal, the country's presidency said in a statement.
'Once again, the Republic of Djibouti clearly reaffirms that the DCT company cannot under any circumstances 'come back' under the control of DP World,' it said.
'DP World will therefore have the State of Djibouti as a single interlocutor for all the discussions regarding the consequences of the concession contract termination,' it said. 'That is why a fair compensation outcome is the only possible option for DP World, in line with the principles of international law.'
The nationalisation has occurred as the United Arab Emirates has expanded its influence, included through military bases, around the Red Sea and East Africa, notes Wikipedia.
At the intersection of the Red Sea and the Gulf of Aden, and located next to the Bab el-Mandeb strait, Djibouti occupies a strategic position, and hosts American, Chinese, French and Italian military bases.
?The Republic of Djibouti, has decided to nationalise with immediate effect all the shares and social rights of PDSA in the DCT company to protect the fundamental interests of the nation and the legitimate interests of its partners,?the presidency said in a statement.
The government of Djibouti seized the Doraleh Container Terminal from Dubai's DP World in February over this dispute.
A London court has said DP World's contract to run the terminal was still valid.
The Port of Djibouti, PDSA, is itself majority-owned by the Djibouti state and in turn owns a two-thirds stake in the container terminal, while DP World owns the other third.
However, Djibouti said that the terminal had 'de facto' come under control of DP World, despite its minority stake.
By directly nationalising the stake owned by PDSA, Djibouti would ensure the government's control over the terminal, the country's presidency said in a statement.
'Once again, the Republic of Djibouti clearly reaffirms that the DCT company cannot under any circumstances 'come back' under the control of DP World,' it said.
'DP World will therefore have the State of Djibouti as a single interlocutor for all the discussions regarding the consequences of the concession contract termination,' it said. 'That is why a fair compensation outcome is the only possible option for DP World, in line with the principles of international law.'
The nationalisation has occurred as the United Arab Emirates has expanded its influence, included through military bases, around the Red Sea and East Africa, notes Wikipedia.
At the intersection of the Red Sea and the Gulf of Aden, and located next to the Bab el-Mandeb strait, Djibouti occupies a strategic position, and hosts American, Chinese, French and Italian military bases.