Port de Djibouti SA which owns 66.66 per
cent majority shares in the Doraleh Container Terminal (DCT) has been
nationalised by Djibouti.
cent majority shares in the Doraleh Container Terminal (DCT) has been
nationalised by Djibouti.
Djibouti cited an order from the
president “to protect the fundamental interests of the nation and the
legitimate interests of its partners” as reason for taking full control
of the company.
president “to protect the fundamental interests of the nation and the
legitimate interests of its partners” as reason for taking full control
of the company.
The DCT’s strategic location near the Red
Sea and the Gulf of Aden enables it to serve as a busy maritime
shipping lane for ships from Asia, as well as oil tankers heading to
Europe from the Arab Gulf region.
Sea and the Gulf of Aden enables it to serve as a busy maritime
shipping lane for ships from Asia, as well as oil tankers heading to
Europe from the Arab Gulf region.
According to Mariama Sow, Research
Analyst – Africa Growth Initiative, said in his expose that the latest
move from the Djiboutian government follows months of rising tensions
with the port’s operator, a Dubai-based firm called
DP World.
Analyst – Africa Growth Initiative, said in his expose that the latest
move from the Djiboutian government follows months of rising tensions
with the port’s operator, a Dubai-based firm called
DP World.
In February, Djibouti terminated its
contract with DP World after refusing to renegotiate the terms of its
2006 concession and then seized control of the container terminal
facility.
contract with DP World after refusing to renegotiate the terms of its
2006 concession and then seized control of the container terminal
facility.
The Wall Street Journal reported that in July Port de Djibouti SA terminated its shareholder agreement with DP World.
Following this latest announcement, the
government of Djibouti is claiming sole ownership over the DCT since it
controls the public firm now running the container terminal.
government of Djibouti is claiming sole ownership over the DCT since it
controls the public firm now running the container terminal.
DP World has stated it will sue the government of Djibouti over its claim to the shipping terminal.
The fight over the Doraleh terminal
highlights the growing strategic importance of Djibouti, which is close
to some of the world’s busiest maritime shipping lanes in the Red Sea
and Gulf of Aden.
highlights the growing strategic importance of Djibouti, which is close
to some of the world’s busiest maritime shipping lanes in the Red Sea
and Gulf of Aden.
In February, the Djibouti government
seized the facility, stating that it had terminated a 2006 concession
that allowed DP World control of the Doraleh terminal.
seized the facility, stating that it had terminated a 2006 concession
that allowed DP World control of the Doraleh terminal.
This July, Port de Djibouti SA terminated its shareholder agreement with DP World, according to the government.
The Doraleh terminal is now being run by a public company that is solely owned by the Republic of Djibouti, the government said.
Port de Djibouti SA had been owned by the
Djibouti government and Hong Kong-based China Merchants Port Holdings
Co mpany Ltd., which said in its 2017 annual report it has a 23.5% stake
in the asset.
Djibouti government and Hong Kong-based China Merchants Port Holdings
Co mpany Ltd., which said in its 2017 annual report it has a 23.5% stake
in the asset.
China Merchants didn’t immediately respond to a request for comment.
DP World has sought to remained involved
in the Dorelah terminal. On Sept. 5, the company said it had obtained an
injunction from the High Court of England and Wales that prevented the
Djibouti government from pushing it out of
the port, removing directors at Port de Djibouti SA directors or
interfering with that entity’s management.
in the Dorelah terminal. On Sept. 5, the company said it had obtained an
injunction from the High Court of England and Wales that prevented the
Djibouti government from pushing it out of
the port, removing directors at Port de Djibouti SA directors or
interfering with that entity’s management.
Representatives for DP World didn’t immediately respond to a request for comment Monday.
“DP World’s ‘strategy,’ which consists in
trying to oppose the will of a sovereign state, is both unrealistic and
destined to fail,” the government of Djibouti said in its statement.
trying to oppose the will of a sovereign state, is both unrealistic and
destined to fail,” the government of Djibouti said in its statement.
The government said it had not been
warned that DP World had initiated the legal proceeding and described
the injunction as “merely a provisional measure.” It added that “a fair
compensation outcome is the only possible option
for DP World, in line with the principles of international law.”
warned that DP World had initiated the legal proceeding and described
the injunction as “merely a provisional measure.” It added that “a fair
compensation outcome is the only possible option
for DP World, in line with the principles of international law.”
