Global ports operator DP World said Tuesday that it would continue to pursue all legal means to defend its rights in a raging dispute with the government of Djibouti, given that it is a shareholder and concessionaire in Doraleh Container Terminal (DCT).
DP World described Djibouti's decision on Sunday to nationalize the port as "a blatant disregard for the rule of law and respect for commercial contracts."
This step is the latest in the campaign launched by Djibouti government since five years in order to deprive DCT of the agreement signed in 2006, DP World said in a statement published Tuesday – the agreement granted DP World the right to manage the terminal in which it has a stake in.
On August 31, the High Court of England & Wales issued an injunction restraining Djibouti's Port de Djibouti (PDSA), as a shareholder in DCT, from treating its joint venture shareholders' agreement with DP World as terminated. The UK court has further prohibited PDSA from removing directors of the DCT joint venture company.
The concession agreement between DP World and Djibouti, signed in 2006, is governed by English law and through the London Court of International Arbitration, the port operator said.
“Investors across the world must think twice about investing in Djibouti and reassess any agreements they may have with a government that has no respect for legal agreements and changes them at will without agreement or consent,” a DP World spokesperson said.
The terminal was run by DP World since 2006, however, in late February Djibouti canceled the contract.
