DP World denies possible out of court settlement in Djibouti dispute

DP World kicks against termination of concession agreement by Djibouti  

Terminal operator DP World has rejected reports that it might settle out of court in its dispute with the Djibouti government.

A long-running dispute between DP World and the Djibouti government over the running of Doraleh Container Terminal (DCT) came to a head in February this when government seized control of the terminal.

DP World claims the Djibouti government unlawfully seized control of the terminal, kicked out its employees and purported to terminate the agreement. DP World and DCT say they have commenced a new LCIA arbitration against the Government of Djibouti due to this unlawful seizure and purported termination.

Shortly after this in early March, Singapore-based PIL signed an agreement with DCT that would boost its volumes by 33%.

Following reports that it might settle the dispute out of court a DP World spokesperson said that the concession agreement remains in place, and the action taken by the Djiboutian government is subject to legal process in the International court of Arbitration in London.

“We await the outcome of this process. We remain committed to operating Doraleh port as per original agreement of the concession, and we will not consider any other alternative settlement option,” the spokesman said.

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