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Sat 16 Jun 2018 04:51 PM

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DP World 'will not settle' over Djibouti port dispute

Dubai-based port operator says it remain committed to legal process to retake control of the port at Doraleh

DP World 'will not settle' over Djibouti port dispute

DP World said on Saturday it remains committed to taking legal action to regain control of the port at Doraleh after accusing the Djiboutian government of illegally seizing it in February.

The port operator issued a statement after media reports that said it may consider an out of court settlement with respect to the dispute.

A DP World spokesperson said that the concession agreement remains in place, and the action taken by the Djiboutian government is subject to legal process in the International court of Arbitration in London.

“We await the outcome of this process. We remain committed to operating Doraleh port as per original agreement of the concession, and we will not consider any other alternative settlement option.”

The company said in February that the seizure of the terminal was the culmination the government’s campaign to force DP World to renegotiate the terms of the concession.

The concession was awarded by the government in 2006. The terminal is the largest employer and biggest source of revenue in the country. It has operated at a profit every year since it opened.

Since December 2017, the Government of Djibouti has sought to enforce the law against the concession contract related to the container terminal at Doraleh, culminating in a final demand that the contract be renegotiated and the termination of that contract by Presidential Decree along with the expropriation of all of the assets of Doraleh Container Terminal.

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