Dubai - The latest tribunal ruling is the sixth substantive ruling in DP World's favour.
Published: Tue 14 Jan 2020, 12:37 PM
Updated: Sat 14 Mar 2020, 4:56 PM
A tribunal of the London Court of International Arbitration has ordered Djibouti to restore the rights and benefits to global ports operator DP World and Doraleh Container Terminal SA within two months, or pay damages estimated to be $1 billion.
The ruling by the tribunal — the latest in a row of verdicts in favour DP World — said Djibouti had acted illegally when it forcibly removed DP World from management of the terminal in February 2018, claiming it had terminated the 2006 Concession Agreement and transferred the terminal assets to a state-owned entity.
“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,” a statement by Dubai Media Office said.
An independent expert has estimated the losses to DP World since Djibouti took over the Doraleh terminal in February 2018 at more than $1 billion.
DP World, which is majority-owned by the Dubai government, operates nearly 80 marine and inland terminals around the world.
Djibouti seized the container terminal after DP World created another corridor for imports to landlocked Ethiopia in Somaliland, endangering Djibouti’s near-monopoly on Ethiopia’s imports.
DP World said the tribunal ruled that Djibouti broke the law when it removed the company from management of the terminal and transferred the terminal’s assets to a state-run company. The Dubai-based company said Djibouti has ignored five previous rulings in its favour despite the fact that the contract is governed by English law.
— issacjohn@khaleejtimes.com
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