DP World to pursue legal action over disputed Djibouti port

  • 9/12/2018
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The Dubai-based firm said that nationalizing Doraleh amounted to an attempt to flout an injunction of the English High Court The disputed terminal is an essential facility for supplies to neighboring landlocked Ethiopia and is located in the strategic Horn of Africa DUBAI: Dubai’s global port operator DP World said Tuesday it will pursue all “legal means” to defend its claim to a Djibouti terminal after the African nation nationalized the facility. The decision by Djibouti on Sunday to nationalize the Doraleh Container Terminal came after the government scrapped a 50-year concession contract with DP World, triggering a dispute between the two sides. DP World said it has won three rulings from Britain-based courts over the matter, most recently an injunction at the High Court in London on August 31. The Dubai-based firm said Tuesday that nationalizing Doraleh amounted to “an attempt to flout an injunction of the English High Court,” which barred Djibouti authorities from taking control over the facility. The concession agreement between DP World and Djibouti signed in 2006 is governed by English law and through the London Court of International Arbitration, the port operator said. The disputed terminal is an essential facility for supplies to neighboring landlocked Ethiopia and is located in the strategic Horn of Africa. The Djibouti government had a two-thirds stake in the venture. The terminal had been run by DP World since 2006, but in late February Djibouti canceled the contract. Currently, Hong Kong-based China Merchants Port Holdings Company owns a 23.5-percent stake in the facility.

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