DP World steps up attack on Djiboutian government

Global terminal operator DP World is not giving its rights to a port concession in Djibouti lightly.

Yesterday, the Dubai-headquartered company DP World reiterated claims that its concession agreement for the Doraleh Container Terminal (DTC) remains in force, warning that the government’s “illegal” seizure of the facility doesn’t give the right to any third party to violate the terms of the concession agreement.

DP World’s statement came in the wake of news reports on the opening of the first phase of the Chinese-built International Free Trade Zone, after the government in Djibouti scrapped DP World’s exclusive management rights in February this year.

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

DP World has commenced an arbitration against the government of Djibouti before the London Court of International Arbitration and is awaiting the outcome of this process.

DP World won the concession in Djibouti 12 years ago. Last December the government in Djibouti started to try and get DP World to renegotiate its contract but the Dubai company did not acquiesce to these demands and was kicked out of the country in February.