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DP World to be paid by Belgium following arbitration ruling:Belgium’s Antwerp-Bruges Port will pay UAE-based port operator DP World EUR 41.3 mn, in addition to costs and interest fees, based on an arbitration ruling at the International Centre for Settlement of Investment Disputes (ICSID), Splash 247 reports. The decision follows a seven-year port concessions dispute concerning Deurganck dock that was filed in June 2017, according to ICSID case details.
What’s the story? In September 2005, Deurganck dock at the port of Antwerp-Bruges was split between MSC-PSA, which opened up its terminal on the west side of the dock, and DP World, which was allocated the east side, Splash reports. Upon PSA moving all its container operations to the dock, DP World’s volumes were lower than expected, and the port authority granted PSA 40 hectares of DP World’s concession, a move which was challenged by DP World.
Justified, but the compensation was unfair:The tribunal ruled in April 2021 that the port’s decision to repossess the land was justified on four accounts, with the only outstanding issue being whether the compensation to DP World was appropriate, a matter now judged in DP World’s favor. The ruling may see DP World receive as much as EUR 100 mn in payouts, Splash added.
There might be another way: It is possible that DP World and Antwerp-Bruges Port may find an alternative means by which to settle the damages, Splash wrote citing analysts at Alphaliner, who noted the port operator’s reputation for flexibility.
