Gulf News

UK court upholds ruling in favour of DP World in Djibouti port case

Port operator says companies in Djibouti should ‘seriously consider’ dealings with government

- Staff Report

The High Court of England and Wales in London has upheld an injunction prohibitin­g the Port de Djibouti, a state-owned port company, from interferin­g with the management of a joint venture company.

The Doraleh Container Terminal in Djibouti is a joint venture between Dubai’s DP World and the African country’s government, and was managed by DP World-nominated directors.

In late February, Port de Djibouti illegally seized control of the venture from DP World.

“This is yet another in a series of rulings — all in favour of DP World — that demonstrat­e Djibouti’s continuing disregard for the rule of law,” a DP World spokespers­on said.

“We underline our belief that companies intending to operate in such a country or already operating there need to seriously consider their dealings with this government in the face of such behaviour.”

The latest ruling follows an August 31 injunction to prohibit the Port de Djibouti from appointing new directors or removing the DP World-nominated ones, and from acting as if the deal with DP World has been terminated. After the August injunction, there was also a hearing on September 14, at which Port de Djibouti representa­tives failed to appear. The Court ordered that the injunction would continue until it makes a further order.

The Court also extended the injunction to include any affiliate of Port de Djibouti after a decree to transfer ownership in the Terminal from the company to the government of Djibouti.

After the August injunction, there was also a hearing on September 14, at which Port de Djibouti representa­tives failed to appear.

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