DP World, a global port operator, has vowed to continue its legal fight over the Doraleh Container Terminal (DCT) in Djibouti.
The statement, released on March 19, the firm is condemning Djibouti's recent actions as a "blatant disregard for the rule of law."
This escalation follows Djibouti's announcement on September 10, 2023, that it would seize all shares held by the Port of Djibouti, S.A. (PDSA) in the DCT.
This move came after a British court upheld a previous ruling by the London Court of International Arbitration (LCIA) which deemed the concession agreement between Djibouti and DP World to be legally binding.
DP World had a 33.33 per cent stake in the DCT company that has operated Doraleh since 2006.
Djibouti had previously taken control of the DCT in February 2018, arguing that the concession agreement unfairly favored DP World.
“In an apparent attempt to circumvent the injunction, on September 9, 2018, the Government of Djibouti transferred PDSA’s shares in DCT to itself. The new decree was accompanied by a press release replete with untrue statements,'' the statement reads.
The statement also insinuated that DP World had been paid fair compensation by international law.
The port operator adds that Djibouti's acquisition of shares in a key container terminal violates a recent High Court ruling.
The company called the move the latest escalation in a five-year effort by the Djiboutian government to wrest control of the terminal from DP World.
It added that the 2006 Concession Agreement specifies that English law applies and any disagreements concerning the Agreement will be settled through binding arbitration in the London Court of International Arbitration.
“Such arbitration proceedings are ongoing. To date, the Government has not made any offer to compensate DP World.''
The London Court of International Arbitration (LCIA) awarded the firm interim damages of $200 million for damages caused over the period between for the period 23 February 2018 to 31 December 2020.
That was the eighth decision by an international court or tribunal in favour of DP World in its ongoing dispute with the Republic of Djibouti, and total damages due to DP World now amount to $686.5 million, plus accruing interest, while the Concession itself remains legally in force.