DP World has come out on top in a case reviewed by the High Court of England & Wales which has granted an injunction preventing Djibouti's official port company, Port de Djibouti S.A. (PDSA), from treating its agreement with global trade enabler DP World as terminated.
The move is another twist in a long running battle in which Djibouti attempted to seize the Doraleh Terminal which was under DP World’s control.
After The International Court of Arbitration already ruled in DP World’s favour earlier in 2018, this latest development has blocked Djibouti from staking a claim to operative control of the terminal.
As part of the case, the PDSA is not to interfere with the management of DCT until further developments has been processed by the court.
The new ruling states that PDSA:
- Cannot act as if the joint venture agreement with DP World has been terminated
- Cannot appoint new directors or remove DP World’s nominated directors without its consent
- Cannot cause the DCT joint venture company to act on the “Reserved Matters” without DP World’s consent
- Cannot instruct or cause DCT to give instructions to Standard Chartered Bank in London to transfer funds to Djibout
The Court has ordered PDSA to present its defence at another hearing on 14 September, however, if Djibouti attempts to seize the port in the meantime it will be in contravening international law.
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