In 2018, the Government of Djibouti forcibly seized Doraleh Container
Terminal, a key gateway for trade in the Horn of Africa region.
Tribunals in multiple jurisdictions have all ruled in DP
World's favour. However, the Government of Djibouti appears unmoved by negotiation or
legal rulings.
DUBAI, UAE, July 31, 2024 /PRNewswire/ -- DP World
welcomes the decision by a US court to enforce a $200 million award against the Government of
Djibouti, giving it yet another
win in its ongoing legal battle over the ilegal seizure of its
concession to run a container terminal in the Red Sea country.
DP World filed the proceedings in the US courts last year,
seeking to enforce a third partial award issued by the London Court of International Arbitration
(LCIA) over the concession for the Doraleh Container Terminal
(DCT). In a decision on Tuesday, the US District Court for the
District of Columbia granted the
unopposed petition to confirm the partial award issued in 2022.
DCT was seized arbitrarily by the local authorities in
February 2018 after they claimed the
agreement they had signed unfairly favoured DP World. Those claims
were dismissed by judges and arbitrators both in the High Court in
England, and before the LCIA.
Built and operated by DP World, the 1.2 million TEU terminal was
when built widely recognised as the most advanced container
terminal on the east coast of Africa, enabling safe, smooth and efficient
movement of cargo in and out of the country. It remains
Djibouti's largest source of
revenue and the country's single biggest employer, responsible for
creating thousands of jobs – both direct and indirect – for the
local community. Under DP World, it operated at a profit every
year.
A prolonged battle has ensued in courts in multiple
jurisdictions, with every one finding in favour of DP World.
Damages already awarded for lost dividends, breaches of exclusivity
and management fees now amount to nearly $700 million. In the event of a total
expropriation, DP World's claim will exceed a further billion US
dollars.
DP World has vowed never to stop its ongoing legal battle,
until the return of its port concession in Djibouti or it receives full compensation for
its lost investment.
A spokesperson for DP World said: "The authorities in
Djibouti have repeatedly shown an
utter contempt for the rule of law and the norms of good business,
with no respect for legal agreements. Their actions are a warning
to investors across the world who should think twice about the
safety of their existing business in Djibouti and the future value of any new
investments. Put simply, the Djibouti government is bad for business."
DP World has been in Africa for
20 years – investing in critical infrastructure to enable trade. In
Sub-Saharan Africa, it employs more than 27,000 people across 48
countries, with a total container handling capacity of over 2
million TEUs year in Somaliland, Senegal, Angola and Mozambique.
NOTES TO EDITORS:
For DP World media enquiries, please contact:
Adal
Mirza
Group Vice
President,
Media
Relations
Adal.mirza@dpworld.com
+971 50 628
7856
|
Hakam
Kherallah
Group Senior
Manager,
International Media
Relations & CEO Communications
Hakam.Kherallah@dpworld.com
+971 50 552
2610
|
Follow DP World on:
X (Twitter): https://twitter.com/DP_World
LinkedIn: https://www.linkedin.com/company/dp-world
About DP World
Trade is the lifeblood of the global economy, creating
opportunities and improving the quality of life for people around
the world. DP World exists to make the world's trade flow better,
changing what's possible for the customers and communities we serve
globally.
With a dedicated, diverse and professional team of more than
111,000 employees from 159 nationalities, spanning 77
countries on six continents, DP World is pushing trade further and
faster towards a seamless supply chain that's fit for the
future.
We're rapidly transforming and integrating our businesses --
Ports and Terminals, Marine Services, Logistics and Technology –
and uniting our global infrastructure with local expertise to
create stronger, more efficient end-to-end supply chain solutions
that can change the way the world trades.
What's more, we're reshaping the future by investing in
innovation. From intelligent delivery systems to automated
warehouse stacking, we're at the cutting edge of disruptive
technology, pushing the sector towards better ways to trade,
minimising disruptions from the factory floor to the customer's
door.
WE MAKE TRADE FLOW TO CHANGE WHAT'S POSSIBLE FOR
EVERYONE
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