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London Court Restores DP World Rights for Doraleh Container Terminal

Logistic News - Published on Wed, 22 Jan 2020

Image Source: Doraleh Container Terminal
DP World has won a further legal hearing against the Government of Djibouti over the Doraleh Container Terminal. A Tribunal of the London Court of International Arbitration ordered Djibouti to restore the rights and benefits under the 2006 Concession Agreement to DP World and Doraleh Container Terminal SA within two months, or pay damages. An independent expert has estimated the losses to DP World at more than USD 1 billion. The ruling by the Tribunal said Djibouti had acted illegally when it forcibly removed DP World from management of the terminal in February 2018, claimed it had terminated the Concession Agreement and transferred the Terminal assets to a state-owned entity. DP World now awaits proposals from Djibouti about how it intends to comply with the latest legal ruling. If Djibouti does not comply with the ruling, the Tribunal has stated it will proceed to issue an award of damages.

The Doraleh Container Terminal is the largest employer and biggest source of revenue in the country and has operated at a profit every year since it opened. The Doraleh Container Terminal was found by an English court to have been a great success for Djibouti under DP World’s management.

DP World Doraleh (Djibouti)
Concession agreement signed in 2006
Shareholding structure: 67% Government of Djibouti and 33% DP World
Quay length: 1,050 metres
Number of berths: 3
Annual capacity: 1.2 million TEU
Built and operated by DP World, Doraleh Container Terminal (DCT), is 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. The terminal is Djibouti’s single biggest employer and is responsible for creating thousands of jobs – both directly and indirectly – for people in the local community

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Posted By : Yogender Pancholi on Wed, 22 Jan 2020
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