DP World welcomes the decision by a US court to enforce a $200 million award against the Government of Djibouti, giving it yet another win in its ongoing legal battle over the illegal seizure of its concession to run a container terminal in the Red Sea country.
DP World filed the proceedings in the US courts last year, seeking to enforce a third partial award issued by the London Court of International Arbitration (LCIA) over the Doraleh Container Terminal (DCT) concession. On Tuesday, the US District Court for the District of Columbia granted the unopposed petition to confirm the partial award issued in 2022.
The local authorities arbitrarily seized DCT in February 2018 after they claimed the agreement they had signed unfairly favored DP World. Judges and arbitrators dismissed those claims in the High Court in England and before the LCIA.
Built and operated by DP World, the 1.2 million TEU terminal was widely recognized as the most advanced container terminal on the east coast of Africa when built. It enabled the safe, smooth, and efficient movement of cargo in and out of the country. It remains Djibouti’s largest source of revenue and the country’s single biggest employer, responsible for creating thousands of jobs—both direct and indirect—for the local community.
A prolonged battle has ensued in courts in multiple jurisdictions, with everyone finding in favor of DP World. Damages already awarded for lost dividends, breaches of exclusivity, and management fees now amount to nearly $700 million. In the event of a total expropriation, DP World’s claim will exceed a further billion US dollars.
DP World has been in Africa for 20 years – investing in critical infrastructure to enable trade. Sub-Saharan Africa employs more than 27,000 people across 48 countries, with a total container handling capacity of over 2 million TEUs per year in Somaliland, Senegal, Angola, and Mozambique.
Source: Port News
