Djibouti disputes DCT court ruling

Doraleh Container Terminal The Republic of Djibouti says the latest court ruling on the operation of Doraleh Container Terminal "flouts the rules of international law". Image: DP World
Industry Database

The Republic of Djibouti says it cannot accept a recent court ruling in favour of DP World concerning the operation of Doraleh Container Terminal (DCT).

This decision by a tribunal of the London Court of International Arbitration requiring the Republic of Djibouti to restore the rights and benefits under the 2006 Concession Agreement to DP World and Doraleh Container Terminal SA within two months, or pay damages “flouts the rules of international law”, said Djibouti.

These rules allow a sovereign State to terminate any contract for reasons of higher national interest subject to the payment of fair compensation, it said.

“Under no circumstances can the Republic of Djibouti accept such a ruling,” stated the government.

It maintains that the termination was legal and the only action it is prepared to take is to provide compensation.

“The State of Djibouti remains, as it has done so from the outset of this process, willing to negotiate the terms of a mutually satisfactory solution, but cannot accept arbitrary “convictions” that disregard the interests of the country and so-called “independent” expertise that can in no way serve as a financial “basis” for an agreement between the parties,” it said.

DCT, a Djibouti port operator owned 33.34% by DP World Group, and 66.66% by Port de Djibouti S.A., an entity of the Republic of Djibouti, was seized by the government of Djibouti in February 2018.

DP World designed and built DCT and managed it under a concession agreement awarded in 2006.

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