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English news

07-Apr-2019

London court orders Djibouti to pay USD385mn to DP World JV

A London court has ruled in favour of a DP World partnership firm in Africa by ordering Djibouti government to pay USD385mn plus interest to the joint venture port operator for breach of exclusivity rights. The ruling by London Court of International Arbitration in favour of Doraleh Container Terminal (DCT), a Djibouti port operator owned 33.34% by DP World Group, and 66.66% by Port de Djibouti, is the latest round of victory for Dubai-based global ports operator, which has been involved in a protracted legal battle against the Djibouti government for violation of contractual rights. The latest ruling is the fifth substantial verdict in DCT and DP World's favour on disputes relating to the Doraleh terminal. The legal battle between DP World and Djibouti government-owned Port de Djibouti erupted when the government of Djibouti illegally seized the DCT from DP World-owned entity in February 2018 over a dispute dating back to at least 2012. The seizure forced DP World employees to leave the country. Since then, DP World has commenced arbitration proceedings against the Djibouti government before the London Court of International Arbitration and has been awaiting the outcome of the process. 

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