from SAID ABOUBAKER in Djibouti, Djibouti
Djibouti Correspondent
DJIBOUTI, (CAJ News) – THE London Court of International Arbitration (LCIA) has confirmed that the Government of Djibouti acted unlawfully when it seized control of the Doraleh Container Terminal (DCT) from DP World in 2018.
The final ruling, issued this week, closes arbitration between DP World and Port de Djibouti SA (PDSA), but leaves the Dubai-based logistics giant’s wider dispute with the government and its Chinese partner, China Merchants Port Holdings, ongoing.
The tribunal upheld the validity of DP World’s 50-year concession agreement for Doraleh, ruling that attempts to terminate the contract were unlawful. However, damages were not awarded against PDSA, with liability instead placed on the Government of Djibouti.
DP World still holds enforceable arbitration awards worth $685 million against Djibouti, which the government has refused to pay. The company also has active claims of around $1 billion against the government and China Merchants.
“Djibouti’s claims are at odds with reality, proven time and again in independent international tribunals,” a DP World spokesperson said.
“It is extraordinary that the government continues to spread a false narrative despite overwhelming evidence. This undermines investor confidence, damages Djibouti’s reputation, and ultimately hurts its people.”
DP World rejected assertions by Djibouti’s leadership that the dispute had ended, stressing that multiple rulings have confirmed the seizure was unlawful.
“This case is bigger than DP World — it is about whether governments can tear up binding contracts and ignore international law without consequence,” the spokesperson added.
While PDSA was awarded costs in the latest case, previous LCIA rulings found its attempts to cancel DP World’s joint venture unlawful.
The decision marks the end of LCIA proceedings with PDSA but ensures the high-stakes legal battle with Djibouti’s government is far from over.
– CAJ News