Djibouti Ready to Yield in DP World Fracas

Djibouti’s government is ready to pay renumeration in order to settle the longstanding fracas with DP World over the Doraleh Container Terminal in Djibouti, according to a recent interview in the Financial Times.

The terminal was originally operated by DP World in a legally binding agreement.

However, after a disagreement, Djibouti seized operations of the terminal, which led The International Court of Arbitration in London, UK, to favour DP World as the rightful and legal operators of the terminal.

Despite the ruling, Djibouti refused to budge, and even sought out other operators for the key terminal.

Djibouti Courts Ethiopia in DP World Terminal Wrangle

Most recently, DP World reiterated its stance that its concession to operate Dolareh Terminal remains in force.

DP World Reiterates Validity of Dolareh Concession

Speaking to the Financial Times, Chairman of the Djibouti Ports & Free Trade Zones Authority Omar Hadi said: “For us arbitration is over. [DP World] have to sit down with us, take their money and go.”

Despite Djibouti’s reluctance to acknowledge DP World’s legal right over the terminal in recent months, after the international ruling in DP World’s favour, it has been hard for the East African state to mount a serious case for controlling Dolareh Terminal.

Dolareh Terminal remains so vital as of its strategic position on the African East Coast, acting as a feeder port to neighbouring landlocked Ethiopia.

Read more: DP World Plans Ethiopian Logistics Facility