DP World reiterated today that its concession agreement for the Doraleh Container Terminal (DTC) remains in force, warning that the government’s illegal seizure of the facility doesn’t give the right to any third party to violate the terms of the concession agreement. DP World statement came in the wake of news reports on the opening of the first phase of the Chinese-built International Free Trade Zone, in violation of DP World’s exclusive management rights.
A DP World Spokesperson said:”This is yet another clear example by the Djiboutian Government of violating its contractual obligations and the rights of foreign investors.”
The spokesperson warns that DP World reserves the right to take all available legal actions, including claims for damages against any third parties that interfere or otherwise violate its contractual rights.
On 22 February 2018, the Government of Djibouti unlawfully seized control of the Terminal, forced DP World employees to leave the country and purported to terminate the Concession Agreement. DP World has commenced arbitration against the Government of Djibouti before the London Court of International Arbitration and is awaiting the outcome of this process.