Djibouti terminates DP World’s concession agreement

Djibouti terminates DP World’s concession agreement

By Jite Eriabie 

Djibouti has terminated the concession contract it signed with Dubai-based port and terminal operator DP World for the operation of the Doraleh Container Terminal (DCT) in Djibouti.

According to a statement from the office of the country’s President, Ismail Omar Guelleh, “The Republic of Djibouti has decided to proceed with the unilateral termination with immediate effect of the concession contract awarded to DP World.” 

The decision comes on the back of a dispute between DP World and the government of Djibouti.

In 2014, Djibouti launched legal action against DP World for alleged bribing of Abdourahman Boreh, the head of the country’s Port and Free Zone Authority, to secure the 30-year concession to run the Doraleh Container Terminal. 

DP World, however, continued to operate the terminal during the court proceedings.

In February 2017, the London Court of Arbitration cleared DP World of all charges of misconduct in connection with the alleged bribery.

In 2006, DP World and the Djiboutian Government established a joint venture for the operation of terminal, which is located at the entrance of the Red Sea, in the second busiest shipping lane of the world.

Launched in 2009, DCT is capable of handling super Post Panamax containerships. 

Upon the completion of its second phase, the terminal’s handling capacity is expected to hit three million TEUs. 

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