Djibouti ordered to pay US$385m to DCT

DCT Credit: Skilla1st [CC BY-SA 4.0 (]
Industry Database

DP World secured another legal victory this week when the Djibouti government was ordered to pay US$385m plus interest to Djibouti port operator Doraleh Container Terminal (DCT) for breaching its exclusivity rights by developing container facilities at Doraleh Multipurpose Terminal.

Ruling on the case of DCT, 33.34% owned by DP World Group and 66.66% by Port de Djibouti S.A., an entity of the Republic of Djibouti, the London Court of International Arbitration (LCIA) found that by developing new container port opportunities with Hong-Kong based port operator China Merchants, Djibouti breached the rights of DCT under the 2006 Concession Agreement to develop a container terminal at Doraleh. Djibouti was also found to have breached DCT’s exclusivity over all container handling facilities in the territory of Djibouti.

Additional payment

The Tribunal also ordered Djibouti to pay DCT US$148m for historic non-payment of royalties for container traffic not transferred to DCT once it became operational. Djibouti is also ordered to pay DCT’s legal costs.

In February 2018, the government of Djibouti took control of the terminal, arguing the terms of the agreement had been broken and that DP World had underperformed. In August 2018, an arbitral tribunal of the LCIA ruled that the Government of Djibouti’s seizure of the Doraleh Container Terminal from DP World was illegal because the latter’s concession agreement remains valid.


The tribunal said that further damages are possible if Djibouti develops a planned Doraleh International Container Terminal (DICT) with any other operator without the consent of DP World.

China Merchants also operates a US$3.5bn free trade zone it developed pursuant to an agreement with Djibouti, in contravention of DP World’s exclusive right to develop and operate such a free zone under its own concession, which is the subject of other litigation proceedings.

DP World said it had "no further comment to make".

By Rebecca Jeffrey


SOHAR Port and Freezone Launches SOHAR Navigate

The innovative online route planner contains deep-sea and short-sea schedules connecting to 550 port... Read more

Solvo.TOS a Key Ingredient in Angola’s Plans to Grow Its Economy

Solvo.TOS has been chosen by Sogester S.A. (APMT and GF Sociedade Gestore de Terminais, SA) to moder... Read more

SANY Port Machinery launches the new efficient Reach Stacker H9 in Europe

Sany well understood the customers’ need to improve cost. In 2018 SANY introduced the new Reach Stac... Read more


Bromma has been selected to deliver the spreaders for the automatic stacking cranes to be commission... Read more

Kalmar's automated and manual straddle carriers selected by Patrick Terminals for fleet renewal programme

Kalmar's automated and manual straddle carriers selected by Patrick Terminals for fleet renewal prog... Read more


Hyster Europe has launched a new top lift Laden Container Handler that is expected to increase produ... Read more

View all