DP World’s Djibouti battle continues at court in London

DP World has won another legal hearing against the government of Djibouti over the Doraleh Container Terminal, having been kicked out of the country two years ago.

A tribunal of the London Court of International Arbitration has ordered Djibouti to restore the rights and benefits under the 2006 concession agreement to DP World and Doraleh Container Terminal within two months, or pay damages.

The latest tribunal ruling is the sixth ruling in DP World’s favour in the London Court of International Arbitration and the High Court of England and Wales. To date all have been ignored by Djibouti despite the original contract for the concession being written under and governed by English law.

DP World had had a concession in Djibouti since 2006. The government in Djibouti had tried to get DP World to renegotiate its contract towards the end of 2017. In February 2018 the government terminated DP World’s contract and has since nationalised the Doraleh Container Terminal.

DP World has also kicked off legal proceedings against China Merchants who are involved in a rival terminal to Doraleh despite DP World’s original contract stating it would be Djibouti’s exclusive terminal.