Djibouti Siezes Doraleh Port from DP World (Again) 

Djibouti Siezes Doraleh Port from DP World (Again) 

Djibouti nationalises key shares after international court rules in DP World’s favour

The State of Djibouti has terminated the concession for the Doraleh container terminal shortly after an international court ruled - for the second time - that DP World had the legal concession on the port.

This latest twist is yet another chapter in an ongoing fracas between DP World and the State of Djibouti.

The history of the case has DP World acquiring a controlling minority stake (33.33%), giving them the right to operate the terminal, before Djibouti seized back control of the terminal.

2018 has seen the case go to the London Court of Arbitration twice, with DP World winning the case on both counts.

DP World Wins Second Djibouti Ruling

Despite the court ruling DP World was acting in a legal and correct manner, while Djibouti was contravening the terms of the contract, the East African state has moved to occupy the terminal once more.

The State of Djibouti said in a press release: “The implementation of this concession contract was severely prejudicial to the fundamental interests of the Republic of Djibouti, to the development of the country and to the control of its most strategic infrastructure asset.

“Taking into account the early termination of the concession contract, Port de Djibouti SA (PDSA), which is the majority shareholder in DCT (66,66%), terminated the shareholders agreement (joint venture) entered into with DP World on 27 July 2018.

“This shareholders agreement had granted all powers to the minority shareholder and transformed the majority shareholder into a mere observer.

“The termination was made in the strictest compliance with Djiboutian law, which governs the joint venture and the statutes of DCT.”

After nationalising its shares, Djibouti is arguing that a fair compensation outcome is the only possible option for DP World, in line with the principles of international law.

Read more: DP World Reiterates Validity of Doraleh Concessions

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