DP World’s Djibouti contract scrapped

A diplomatic spat has erupted in the Middle East with Dubai terminal operator DP World accusing the government of Djibouti of illegally seizing control of the Doraleh Container Terminal.

DP World said in a statement that the seizure of the terminal came after the government’s campaign to force DP World to renegotiate the terms of its concession in the Horn of Africa. DP World has had a concession in Djibouti since 2006.

DP World has commenced arbitration proceedings at a court in London.

The government in Djibouti has been trying to get DP World to renegotiate its contract since last December. A final demand was issued on Wednesday and the contract was then scrapped via presidential decree yesterday.