Djibouti, DP World in Legal Spat

Posted by Greg Trauthwein
Tuesday, July 08, 2014
Djibouti (Image: Google Maps)

Djibouti said it had started legal action against DP World, seeking to rescind the Dubai-owned port operator's concession in Africa's largest container terminal in a row over how the contract was awarded.

"The resulting agreement unfairly favoured DP World," the government said in a statement, which questioned payments made in winning the concession in 2000.

DP World said it rejected Djibouti's allegations.

"We categorically reject the accusations and will vigorously defend our position during arbitration," a company spokesperson told Reuters by email. "We are disappointed that the government has chosen to take this action after working so closely with us as partners over the past 14 years."

DP World, which has a portfolio of about 65 terminals across six continents, owns one-third of Djibouti's Doraleh Container Terminal, the company's annual report says.

Following the collapse of negotiations with DP World, Djibouti launched arbitration proceedings in London and expects the case to be heard in mid-2015.

DP World can run Doraleh while the case is pending.

"We have invested significantly in Djibouti over those years and have been a major contributor to its economy and to its community," DP World said.

"It is surprising the accusations come from a government whose parliament ratified our concession."

A former French colony, Djibouti hosts a French military base and the only U.S. military base in Africa. Its port is used by foreign navies policing the Gulf of Aden's shipping lanes, some of the busiest in the world, against pirates from Somalia, which borders the country to the south.

Doraleh is Africa's largest container terminal, the government said, while transport accounts for nearly a third of Djibouti's gross domestic product.

(By Matt Smith; Reporting by Matt Smith, editing by David Evans)


Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Northern Fleet to Conduct Anti-terrorist Exercises

The sailors of the Northern Fleet will conduct anti-terrorism exercises at Novaya Zemlya. During the exercise, the coast will be a landing. The landing will

MECNW Appoints New CEO

Terry Weston has been confirmed as Chief Executive of Maritime and Engineering College North West (MECNW) following the retirement of his predecessor, Jim Teasdale, at the end of September.

MacGregor's Deck Machinery for Sentinel Marine ERRV

MacGregor, part of Cargotec, will supply deck machinery for a new 65m emergency rescue & response vessel (ERRV) for Sentinel Marine. The ship has been designed


PCCI to Provide Revised Crane Load Chart

PCCI, Inc. of Alexandria, Virginia, was awarded a contract by the Department of Transportation/U.S. Maritime Administration (MARAD) to provide a new, revised

Finland Scraps LNG Terminal Plan

Finnish gas utility Gasum has abandoned its plans to build the Finngulf liquefied natural gas  (LNG) import terminal in Finland with an offshore pipeline connection

Azerbaijan to Get New Passenger Vessel This Year-end

Azerbaijan Caspian Shipping Company  expects to get the first of the three passenger vessels being built currently at the Baku Shipbuilding & Repair Plant (Baku Shipyard LLC) until the end of 2015,


Weak Capesize Rates Depress Baltic Index

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Tuesday on weak demand for capesize vessels. The overall index,

U.S. Investigators Head to Florida to Probe Ship Lost in Hurricane

Federal safety investigators traveled to Florida on Tuesday to investigate the U.S. container ship lost at sea after being hit by powerful Hurricane Joaquin, leaving

PCCI to Provide Revised Crane Load Chart

PCCI, Inc. of Alexandria, Virginia, was awarded a contract by the Department of Transportation/U.S. Maritime Administration (MARAD) to provide a new, revised

Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1296 sec (8 req/sec)