date of publication:
April 13, 2021 11:52 GMT
Update date: Apr 13, 2021 13:35 GMT
Documents seen by “Reuters” revealed that DP World, the largest operator of ports in the world, is seeking compensation of $ 210.2 million from Djibouti over a legal dispute.
There has been a dispute between DP World and Djibouti since 2012 regarding a concession granted to the company to operate the Doraleh container terminal on the Horn of Africa on important trade routes at the southern entrance to the Red Sea.
The government of Djibouti removed the terminal from Dubai Ports World in 2018. The London Court of International Arbitration had previously ruled that the concession granted to DP World was legal and binding and ordered Djibouti to return the rights of the company.
DP World is now seeking compensation for the estimated loss of revenue and management fees from 2018 to March 31 of this year through the same court, as it seeks to restore its concession right.
A document showed that the company estimates that losses will exceed one billion dollars, including future profits if the franchise rights are not returned to it.
The London court is expected to rule on the company’s compensation claims on June 29.
Alexis Mohamed, a senior advisor to President Ismail Omar Guelleh, who won a fifth term in the elections last Friday, said, “If DP World wants to start other measures again, it is free to do so, but Djibouti has already made clear its position and from our point of view the matter is settled.”
Dubai Ports World said: It is still the legitimate holder of the concession, and that Djibouti acted illegally by taking the station away from the company owned by the government of Dubai.