DP World wins Djibouti court hearing

The operator has been locked in a litigation battle with China Merchants Port Holdings in Hong Kong since 2019 over what it calls the ”unlawful interference” with its rights in Djibouti.

During this time, DP World has sought to defend its rights as shareholder and concessionaire in Djibouti’s Doraleh Container Terminal, while China Merchants has unsuccessfully sought to move the case to the courts of Djibouti.

Long running

The Court of Appeal of Hong Kong dismissed the latest request by China Merchants Port Holdings seeking permission to file a second appeal before the Court of Final Appeal, against its previous decision that DP World’s suit against the company should be heard before Hong Kong Courts, and not the courts of Djibouti.

DP World and joint venture company Doraleh Container Terminal are bringing multi-billion dollar claims against China Merchants alleging that it induced the government of Djibouti to expel DP World from the country and hand over the Doraleh terminal to China Merchants.

Claims over China Merchants investments in other ports and free zone projects in Djibouti, in breach of DP World’s exclusivity rights, will also be examined.

The Hong Kong court ruling follows a ruling in January 2022 by the London Court of International Arbitration (LCIA) against the Republic of Djibouti, awarding interim damages of US$200 million for damages caused over the period between for the period 23 February 2018 to 31 December 2020.

That was the eighth decision by an international court or tribunal in favour of DP World in its ongoing dispute with the Republic of Djibouti and total damages due to DP World now amount to US$686.5 million, plus accruing interest, while the concession itself remains legally in force.

The Doraleh Container Terminal is both the largest employer and source of revenue in Djibouti.