Damages sought over concession dispute

DP World wants US$210.2m in damages from Djibouti’s government in the latest legal proceeding over the Doraleh Container Terminal that was seized from DP World by Djibouti in February 2018, according to documents seen by Reuters.

In January 2020, a tribunal of the London Court of International Arbitration ordered Djibouti to immediately restore the rights and benefits under the 2006 Concession Agreement to DP World and Doraleh Container Terminal SA within two months, or pay damages. However, Djibouti said it could not accept the court ruling.

DP World is seeking damages for the estimated loss of revenue and management fees from 2018 to 31 March this year through the same court while still seeking to restore the concession, the documents showed.

If the concession is not restored, DP World estimates losses in excess of US$1bn, including future profits, one of the documents showed. A decision on DP World’s claim by the London court is expected on 29 June.

DP World has maintained it is the legal holder of the concession throughout the dispute and believes Djibouti has acted illegally in seizing the terminal.

“If today DP World wants to again begin other proceedings, they are free to do so, but Dijbouti has already made its position clear and in our view this matter is settled,” said Alexis Mohamed, chief adviser to Djibouti president Ismail Omar Guelleh, reported Reuters.