DP World wins latest Doraleh court case

Doraleh Container Terminal DP World losses over the Doraleh Container Terminal are estimated to be more than US$1bn. Image: Skilla1st [CC BY-SA (https://creativecommons.org/licenses/by-sa/4.0)]
Industry Database

The latest legal hearing in a long running dispute over the Doraleh Container Terminal has ruled in favour of DP World.

A tribunal of the London Court of International Arbitration has 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.

An independent expert has estimated the losses to DP World at more than US$1bn. The ruling by the Tribunal said Djibouti had acted illegally when it forcibly removed DP World from management of the terminal in February 2018, claimed it had terminated the Concession Agreement and transferred the Terminal assets to a state-owned entity.

Previous rulings ignored

The latest tribunal ruling is the sixth substantive ruling in DP World's favour in the London Court of International Arbitration and the High Court of England and Wales. To date all have been ignored by Djibouti despite the original contract for the concession being written under and governed by English law.

The Doraleh Container Terminal was designed, built and operated by DP World following a concession awarded in 2006. It is the largest employer and biggest source of revenue in the country and has operated at a profit every year since it opened. The Doraleh Container Terminal was found by an English court to have been a "great success" for Djibouti under DP World's management.

DP World now awaits proposals from Djibouti about how it intends to comply with the latest legal ruling. If Djibouti does not comply with the ruling, the Tribunal has stated it will proceed to issue an award of damages.

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