Djibouti has terminated the concession contract with Dubai-based port and terminal operator DP World for the operation of the Doraleh Container Terminal (DCT) in Djibouti, Reuters reports citing a statement from the president’s office.
“The Republic of Djibouti has decided to proceed with the unilateral termination with immediate effect of the concession contract awarded to DP World,” the statement from the office of the President Ismail Omar Guelleh reads.
When approached by World Maritime News, DP World confirmed the contract termination, saying that the “Government of Djibouti illegally seized control of the terminal.”
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 DCT.
The port operator 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 DCT, located at the entrance of the Red Sea, in the second busiest shipping lane of the world.
DCT, launched in 2009, is capable of handling super Post Panamax containerships. The handling capacity of the terminal is planned to be extended to 3 million TEUs after the completion of Phase II.
World Maritime News Staff