DP World responds to reports over Djibouti settlement
DP World said in a statement over the weekend that media reports that it is looking for an out-of-court settlement in its ongoing dispute with the Djiboutian government over Doraleh Container Terminal are incorrect.
“It has been noted in some reports that DP World may consider an out of court settlement with respect to the dispute with the Djiboutian government over their illegal action in taking control of the port at Doraleh,” a company statement said.
A DP World spokesperson said that the concession agreement remains in place, and the action taken by the Djiboutian government is subject to legal process in the International court of Arbitration in London.
“We await the outcome of this process. We remain committed to operating Doraleh port as per original agreement of the concession, and we will not consider any other alternative settlement option.”
Doraleh Container Terminal was designed and built by DP World in 2006 and was operated by the global UAE-based port operator until earlier this year when the Djiboutian government seized control of the terminal.
The government claims that the 2006 concessions awarded to DP World are damaging to the national interest.
The terminal, the largest employer and biggest source of revenue for Djibouti, has been operating on profit, according to DP World.
The terminal’s seizure was the culmination of Djibouti’s campaign to force DP World to renegotiate the terms of concession.
DP World insists that those terms were found to be “fair and reasonable” by a London Court of International Arbitration Tribunal.