Global ports operator takes government to court over violation of rights

DP World has a 33% equity stake in the Port of Doraleh which has a capacity of 1.25 million TEUs. Source: DP World

DP World has threatened legal action against any third party that interferes with or violates its contractual rights as the sole operator of the Doraleh Container Terminal in Djibouti.

This after the launch last week of the first phase of the Chinese-built International Free Trade Zone at the terminal. According to DP World this was in violation of its exclusive management rights.

“This is yet another clear example by the Djiboutian government of violating its contractual obligations and the rights of foreign investors,” a DP World spokesperson said.

In a statement, the international ports operator noted that its concession agreement for the DCT remained in force despite the Djiboutian government’s claims that it has been terminated.

In February this year, the government of the East African country seized control of the facility from DP World forcing its employees out of the country. The ports operator has commenced with arbitration against the government before the London Court of International Arbitration and is awaiting the outcome of the process.

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