Sign in
US court enforces USD 200 mn ruling against Djibouti in DP World dispute: A US court has backed a decision awarding DP World USD 200 mn from the government of Djibouti over its seizure of the Doraleh Container Terminal from DP World in 2018, CNBC reports. DP World had filed the proceeding in US courts last year.
What does the decision mean? The decision upholds a third partial award in favor of DP World by the London Court of International Arbitration (LCIA), which awarded the firm USD 200 mn for damages incurred between 23 February 2018 to 31 December 2020. This is the ninth decision by an international court or tribunal in favor of DP World in this dispute.
What’s the story? DP World has been embroiled in legal squabbling with Djibouti for five years over this issue. DP World held a 33.3% stake in DCT and had operated the Doraleh terminal since 2006. Djibouti seized control of the DCT after claiming the concession agreement had unfairly favored DP World, and transferred all shares held by the Port of Djibouti in DCT to itself last September.
A long time coming: DP World hit back and doubled down on its commitment to continue its legal wrangling over the operation of Doraleh Container Terminal (DCT) in Djibouti back in March.
DP World says others should take heed: DP World is warning investors to “think twice about the safety of their existing business in Djibouti and the future value of any new investments,” as a spokesperson told CNBC.
