Arab News

DP World wins ruling against Djibouti’s port company

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Dubai’s DP World said on Monday an arbitratio­n tribunal in London ruled that Djibouti’s port company, Port de Djibouti (PDSA) breached a joint venture agreement over a container terminal with DP World by wrongfully attempting to end it.

DP World, one of the world’s

biggest port operators, and Djibouti have been in dispute since 2012 over DP World’s concession to operate the Doraleh Container Terminal, located in the Horn of Africa along strategic trade routes at the southern entrance to the Red Sea.

Djibouti said in 2018 it was placing the terminal in state hands and since then it has been operated by a management company controlled by the Djibouti government.

DP World called the seizure illegal, and the London Court of Internatio­nal Arbitratio­n (LCIA) ruled in August 2018 that the company’s contract in Djibouti was valid and binding.

DP World said in a statement on Monday the court ruled that PDSA remained a shareholde­r in the joint venture, and its attempted transfer of its shares to the government had no effect. The arbitratio­n will proceed to a second phase to decide the damages owed by PDSA to DP World, the DP World statement, published online, said.

 ?? Getty Images ?? Djibouti said in 2018 it was placing the terminal in state hands and since then it has been operated by a management company controlled by the Djibouti government.
Getty Images Djibouti said in 2018 it was placing the terminal in state hands and since then it has been operated by a management company controlled by the Djibouti government.

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