Dubai’s DP World will not consider settlement with Djibouti over port

Dubai-based ports operator DP World has denied reports that it is mulling an out of court settlement with Djibouti regarding the port at Doraleh.

“It has been noted in some reports that DP World may consider an out of court settlement with respect to the dispute with the Djiboutian government over their illegal action in taking control of the port at Doraleh,” the company said in a brief statement.

However, the concession agreement for the port remains in place, and the action taken by the Djiboutian government is subject to legal process in the International Court of Arbitration in London, a DP World spokesperson said.

The concession was awarded by the Djibouti government in 2006 and in February, the African nation ended its contract with DP World to run the Doraleh Container Terminal, citing failure to resolve a dispute that began in 2012.

Read: Djibouti ends container terminal contract with Dubai’s DP World

But DP World called the move an illegal seizure of the terminal and said it had begun new arbitration proceedings before the London Court of International Arbitration, which last year cleared DP World of all charges of misconduct over the concession to run the terminal.

“We await the outcome of this process. We remain committed to operating Doraleh port as per original agreement of the concession, and we will not consider any other alternative settlement option,” the spokesperson said.

The Doraleh terminal has a capacity of 1.6 million TEUs per year.

Also read: Djibouti says port will remain in state hands after ending DP World deal

In March, Djibouti’s Doraleh Container Terminal Management Company announced that it had signed a deal with Singapore-based Pacific International Lines (PIL) to raise the amount of cargo handled at the port.

Read more: Djibouti signs new port deal after ending DP World contract