DP World Wins $685M Damages Against Djibouti in Port Dispute
DP World's long-standing dispute with Djibouti has taken a significant turn. The London Court of International Arbitration (LCIA) has ruled that Djibouti owes DP World hundreds of millions of dollars in damages, impacting the world market. This case has broader implications, testing governments' rights to unilaterally terminate binding contracts with foreign investors.
DP World, a global logistics company, has been awarded about $685 million in enforceable damages so far. The LCIA confirmed that Djibouti acted illegally when it seized the Doraleh Container Terminal (DCT) from DP World in 2018, violating their 50-year concession agreement. Despite this, Djibouti has refused to pay the awarded damages, defying multiple binding decisions.
DP World has dismissed Djibouti's claims that the dispute is resolved. The company maintains that its broader $1 billion claims against the Government of Djibouti and its Chinese partner, China Merchants Group, remain active. DP World has vowed to exhaust all legal avenues to recover damages and enforce prior awards.
DP World's concession agreement for the port remains valid and binding, as confirmed by the LCIA. The case serves as a test of international law and the sanctity of contracts between governments and foreign investors. DP World continues to pursue legal action to ensure justice and the enforcement of its rights, making headlines in the world news.
