Djibouti Slams DP World’s Retaliation Threats

Responding to the recent claims of DP World in connection with the Doraleh Container Terminal (DCT), the Government of Djibouti said that the threats of retaliation against companies that enter into new contracts with Djibouti are futile.

To remind, earlier this week DP World issued a statement saying that its concession agreement awarded by the Government of Djibouti to operate DCT remains in force despite Djibouti’s termination of the deal in February.

The port operator further added that the termination was invalid under the English law, stressing that it would take legal action and claims for damages against any other entities that were reported to be in talks with Djibouti to build and operate other port facilities in the country.

As explained, the said deals were in violation of DP World and DCT’s exclusivity rights.

Djibouti, on the other hand, stressed that the contract termination was done via a transparent legal process, highlighting that DP World lost all rights to the concession contract.

“Contrary to the view of DP World, the termination of the Doraleh Container Terminal (DCT) concession is effective and perfectly legal,” the government said in a statement.

The government further insisted the decision was made after failed attempts to renegotiate the concession terms and that it is grounded on the general interest of the country’s citizens.

Namely, the country was not satisfied with the revenues from the operation of the terminal, adding that its poor performance was hampering the economic development and growth of Djibouti.

Following the termination, DP World has launched a new arbitration case against the Government of Djibouti.

World Maritime News Staff