Dubai – Mubasher: DP World has stated on Tuesday that it will resort to any legal procedure in order to defend its rights in Djibouti’s Doraleh Container Terminal (DCT) against the African country’s government.
Yesterday, the government of Djibouti announced the nationalisation of Port de Djibouti (PDSA), the operator of DCT.
This decision is, apparently, an attempt to circumvent an injunction order by the English High Court, restraining Djibouti’s Port de Djibouti S.A. (PDSA) company from treating its joint venture shareholders’ agreement with DP World as terminated.
“Investors across the world must think twice about investing in Djibouti and reassess any agreements they may have with a government that has no respect for legal agreements and changes them at will without agreement or consent,” DP World spokesperson commented.
The government of Djibouti is a majority owner in PDSA, whose CEO is the chairman of the Djiboutian Ports and Free Zones Authority, while China Merchants Port Holdings owns 23.5% of the company.
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.