US court rules in DP World’s favour over Djibouti legal battle

The Government of Djibouti took back control of DCT in 2018 in a move that is described as “forcible” by DP World and a lengthy legal dispute has ensued with multiple jurisdictions ruling in favour of the Dubai-headquartered terminal operator.

However, the Government of Djibouti appears unmoved by negotiation or legal rulings.

DP World said it welcomed the decision by a US court to enforce a $200 million award against the Government of Djibouti. DP World filed the proceedings in the US courts last year, seeking to enforce a third-party award issued by the London Court of International Arbitration (LCIA) over the concession for the Doraleh Container Terminal (DCT). In a decision on July 30, the US District Court for the District of Columbia granted the unopposed petition to confirm the partial award issued in 2022.

DCT was seized by the Djibouti in February 2018 after they claimed the agreement, they had signed, unfairly favoured DP World. Those claims were dismissed by judges and arbitrators both in the High Court in England, and before the LCIA.

The 1.2 million teu-terminal was built and operated by DP World.

A prolonged battle has ensued in courts in multiple jurisdictions, with every finding in favour of DP World. Damages already awarded for lost dividends, breaches of exclusivity and management fees now amount to nearly $700 million. In the event of a total expropriation, DP World’s claim will exceed a further $1 billion, DP World said in a statement.

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DP World has vowed to continue its ongoing legal battle, until the return of the port concession in Djibouti or it receives full compensation for its lost investment.

 “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. Put simply, the Djibouti government is bad for business,” said a spokesman from DP World.