DP World has secured another legal victory in its dispute with the Government of Djibouti over the seizure of the Doraleh Container Terminal (DCT).
A US District Court for the District of Columbia has enforced a $200 million award in favour of DP World, following a partial award by the London Court of International Arbitration (LCIA) in 2022. This marks the latest in a series of rulings from various jurisdictions supporting DP World since Djibouti forcibly took control of the terminal in 2018.
The dispute began when Djibouti claimed the concession agreement unfairly favoured DP World, leading to the arbitrary seizure of the DCT. Despite multiple legal decisions against it, Djibouti has continued to disregard these rulings. DP World operated the terminal, which was the most advanced in East Africa, generating significant revenue and employment for the local economy.
The total damages awarded to DP World, including compensation for lost dividends and management fees, amount to nearly $700 million, with potential claims exceeding $1 billion in case of full expropriation.
DP World remains committed to seeking justice, either through the return of the terminal or full compensation. The company's spokesperson criticized Djibouti's actions, warning global investors of the risks associated with doing business in the country.
With 20 years of presence in Africa, DP World continues to invest in critical infrastructure across the continent, employing over 27,000 people and managing a container capacity of over 2 million TEUs in several African nations, including Somaliland, Senegal, Angola, and Mozambique.
News Source: Dubai Media Office
