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DP World scrutinises Djibouti gov’t response to court ruling

DP World scrutinises Djibouti gov’t response to court ruling
The Djibouti government “does not have sovereignty over the contract”
DP World
DPW
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Dubai – Mubasher: DP World has criticised the Djibouti government's response to a London court’s decision in the litigation with the UAE company.

Earlier in August, an Arbitral Tribunal affiliated to the London Court of International Arbitration (LCIA) confirmed the illegality of Djibouti’s government seizure of Doraleh Container Terminal from DP World.

The global trade enabler said that the government's response “demonstrates that it does not recognise the international rule of law”. 

Talking into cognizance that the terms of the contract between the African country and the Emirati firm dictate that the agreement is governed by English law, the Djibouti government “does not have sovereignty over the contract”, the company noted. 

In February, the Djiboutian government seized control of the Doraleh Container Terminal from DP World which had designed, built, and operated the terminal since 2006, after being awarded the concession.

Djiboutian officials have rejected the concession, aiming to renegotiate its terms, but another LCIA tribunal deemed it “fair and reasonable”.

DP World is a global trade enabler operates multiple related businesses ranged from marine and inland terminals, maritime services, logistics and ancillary services to technology-driven trade solutions.