11 June 2018
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APO Group (Dakar)

DP World Confident Djibouti's Expropriation of Doraleh Port Will Be Found Illegal

Photo: Djibouti Ports and Free Zones Authority
Computer generated image of planned expansion for Doraleh Multipurposes Port in Djibouti.


An LCIA (London Court of International Arbitration) tribunal in 2017 led by distinguished jurists Lord Leonard Hoffman and Sir Richard Aikens previously rejected Djibouti's claims that the terms of the Concession Agreement are unfair or unreasonable. 

They ruled that the concession agreement was "a very good deal for Djibouti," contained the "best possible terms" that Djibouti could have achieved under the circumstances, and the "President of Djibouti and the Council of Ministers and the President's advisors knew of and approved the terms."

They also concluded "The Terminal was constructed with remarkable speed and opened in December 2008.  It is common ground that it has been a very great commercial success."

Almost a year before the London Court of International Arbitration tribunal issued its decision, Mr. Justice Flaux of the High Court of England and Wales, Commercial Court, issued a similar decision.

He stated at the time, "On any view, the management by DP World of the existing port in Djibouti was a success" and that the overall terms of the DCT Agreements "were even-handed and fair." In conclusion, "The DCT agreements have been a great success, both commercially and financially, for the Republic of Djibouti."

DP World is proud of what it has built and accomplished in Djibouti.  It has been a key contributor in making Djibouti the transport and shipping hub it is today.  It is unfortunate that the Government of Djibouti seeks to dismantle these accomplishments and illegally seize the Terminal in violation of DP World's rights under the concession which remains in force under international law.

DP World is confident that Djibouti's expropriation of Doraleh port will be found illegal in the forthcoming arbitration proceedings now under consideration at the LCIA.

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