Contecon files claim against DPW

07 Jun 2016

ICTSI's Guayaquil subsidiary, Contecon, has filed a claim against DP World and Dubai World Corp to Ecuador's Antitrust Agency, the Superintendent of Market Control (SCPM), for uncompetitive and monopoly practices in respect of their offering to construct and operate the deep water port at Posorja.

Currently, DP World is involved in negotiations with Guayaquil Port Authority (APG) to begin construction of the new port.

The complaint was made directly to the Directorate of Unfair Practices at the SCPM, requested by Contecon, for preventative measures to be immediately adopted in order for the process to be made more transparent and in full compliance of competition and concession laws.

Contecon's attorneys made reference to the offer presented by DP World to the Ministry of Transportation and Guayaquil Port Authority which had requested various unfair demands such as the closing of the actual access navigational channel, the construction of a new one, additional duties in port tariffs for Contecon, derisory fees paid to Ecuador Government, among others. The DP World offer also requested that no container handling capacity be developed in a 200 km straight line from Posorja.

Contecon's country manager also stated that DP World’s offer is “unconstitutional and illegal” as it does not accomplish the public bidding requirements established in Ecuador laws and rulings for private investments initiatives.

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