DP World Not for Settlement with Djibouti

June 17, 2018

 The Dubai-based port operator DP World said that it will not consider alternative legal options outside a court settlement in a dispute with the Djibouti government over the Doraleh Container Terminal.

 
The fourth biggest port operator globally said in a statement: "It has been noted in some reports that DP World may consider an out of court settlement with respect to the dispute with the Djiboutian government over their illegal action in taking control of the port at Doraleh."
 
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 Doraleh terminal has a capacity of 1.6 million TEUs per year. The Eastern African country took control of the Doraleh Container Terminal in February. The UAE denounced Djibouti’s termination of DP World’s concession, calling it an “arbitrary” breach of a signed agreement. 
 
The port operator said in March that it would consider it illegal if any third-party entered into an agreement or arrangement with the Djibouti government related to the port.
 
However, a DP World-owned entity has operated the terminal in accordance to a concession awarded in 2006.
 

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