A US court has decided to enforce a $200M award against the Government of Djibouti in favour of DP World, marking another victory for the company in its ongoing legal dispute over the Doraleh Container Terminal (DCT) concession.
The US District Court for the District of Columbia granted DP World’s unopposed petition to confirm a partial award issued by the London Court of International Arbitration (LCIA) in 2022.
The dispute began in February 2018 when Djiboutian authorities seized the DCT “arbitrarily,” claiming the concession agreement unfairly favoured DP World.
DP World built and operated the 1.2M TEU terminal, which was considered a significant asset for Djibouti’s economy. The company states that the terminal operated at a profit annually under its management.
Legal battles have ensued in multiple jurisdictions, with courts consistently ruling in DP World’s favour. The company reports that damages awarded for lost dividends, breaches of exclusivity, and management fees now total nearly $700M.
“The authorities in Djibouti have repeatedly shown an utter contempt for the rule of law and the norms of good business, with no respect for legal agreements. Their actions are a warning to investors across the world who should think twice about the safety of their existing business in Djibouti and the future value of any new investments.
The company has operated in Africa for two decades, with a presence in 48 Sub-Saharan countries and a total container handling capacity of over 2M TEUs per year across Somaliland, Senegal, Angola, and Mozambique.
