DP World wins case against Djibouti over Doraleh port
Thursday August 02 2018
The Doraleh port in Djibouti. Dubai-based port operator DP World has won an international arbitration against Djibouti over the management of Doraleh Container Terminal. PHOTO | AFP
Dubai-based DP World has won a legal battle against Djibouti over the termination of a contract to manage the Doraleh Container Terminal.
The London Court of International Arbitration on Thursday ruled that Djibouti’s decision in February to cancel the agreement was illegal.
The court said the 30-year concession agreement signed in 2006, “remains valid and binding notwithstanding Law 202 and the 2018 Decrees.”
Djibouti enacted Law 202 and the referenced decrees to allow it renegotiate concession terms.
DP World said it was forced to seek arbitration after the government seized the port facility.
The Dubai-based port operator is one of the world's largest and also manages the Berbera port in Somaliland.