DP World’s Djibouti por t illegally seized in dispute

The government of Djibouti illegally seized control of a terminal managed by a Dubai Ports World-owned company at the Port of Doraleh.

The seizure of Doraleh Container Terminal is the latest move in a long campaign to force DP World to renegotiate the terms of a 30-year concession signed in 2006.

The terminal was designed and built and has been operated since 2006 by a company owned by DP World under contract to the government of Djibouti.

DP World began proceedings before the London Court of International Arbitration to protect its rights and secure damages and compensation for its breach or expropriation.

Last night, the company said the terms of the original agreement had been described as “fair and reasonable” by the court.

Since December last year, the Djibouti government has sought to use the law against the contract between DP World and Doraleh Container Terminal and the government.

“This effort culminated in a final demand that the contract be renegotiated by February 21, and the termination of that contract by presidential decree on Thursday and expropriation of all of the assets of Doraleh Container Terminal,” said DP World.

“We consider the law, the attempt of the government to enforce its terms, the purported termination and expropriation to be in breach of the government’s obligations under its agreements with us, in force since 2004, and international law,” the company said.

“To protect our interests, we have been compelled to commence a new arbitration on February 20 against the government in London, seeking a declaration that the contracts are valid and binding on the government and to obtain urgent interim relief.

“We demand that the government will cease its unlawful conduct and continue to work as partners with us in the same spirit of co-operation that has been in place for the last 18 years, which has yielded hundreds of millions of dollars of direct and indirect benefits to Djibouti.”