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DP World wins legal dispute against Djibouti
AI generated generic image: JR-50 / stock.adobe.com
The London Court of International Arbitration (LCIA) has ruled that Djibouti’s 2018 seizure of the Doraleh container terminal from DP world was unlawful. The case, brought against port operator Port de Djibouti SA (PDSA), concluded without damages awarded against the company, as the tribunal held responsibility lay with the government. According to its own information DP world continues to pursue claims worth around USD 1bn against Djibouti’s government and China merchants port holdings. Separate arbitration awards of about USD 685m in favour of DP world remain valid but unpaid as the company reported.
The tribunal also confirmed that DP World’s 50-year concession for Doraleh is legally binding and that its termination attempt was unlawful. Earlier LCIA rulings had already found against PDSA’s effort to cancel the 2006 joint venture agreement. While this decision closes the case with PDSA, DP world said it will pursue all legal avenues to enforce its rights and recover compensation. (js)