Few days after London court granted a
restraining order, Djibouti has nationalised the two-thirds stake in its
Doraleh Container Terminal held by the Port of Djibouti.
restraining order, Djibouti has nationalised the two-thirds stake in its
Doraleh Container Terminal held by the Port of Djibouti.
In February, Djibouti ended a contract
with DP World, one of the world’s biggest port operators, to run its
Doraleh Container Terminal (DCT), and seized control of the terminal.
with DP World, one of the world’s biggest port operators, to run its
Doraleh Container Terminal (DCT), and seized control of the terminal.
A London court later said DP World’s contract to run the terminal was still valid.
The port of Djibouti, PDSA, is itself
majority-owned by the Djibouti state and in turn owns a two-thirds stake
in the container terminal, while DP World owns the other third.
majority-owned by the Djibouti state and in turn owns a two-thirds stake
in the container terminal, while DP World owns the other third.
However, Djibouti said that the terminal had “de facto” come under control of DP World, despite its minority stake.
By directly nationalising the stake owned
by PDSA, Djibouti would ensure the government’s control over the
terminal, the country’s presidency said in a statement.
by PDSA, Djibouti would ensure the government’s control over the
terminal, the country’s presidency said in a statement.
“The Republic of Djibouti, has decided to
nationalise with immediate effect all the shares and social rights of
PDSA in the DCT company to protect the fundamental interests of the
Nation and the legitimate interests of its partners,”
the statement read.
nationalise with immediate effect all the shares and social rights of
PDSA in the DCT company to protect the fundamental interests of the
Nation and the legitimate interests of its partners,”
the statement read.
“Once again, the Republic of Djibouti
clearly reaffirms that the DCT company cannot under any circumstances
‘come back’ under the control of DP World.
clearly reaffirms that the DCT company cannot under any circumstances
‘come back’ under the control of DP World.
“DP World will therefore have the State
of Djibouti as a single interlocutor for all the discussions regarding
the consequences of the concession contract termination.”
of Djibouti as a single interlocutor for all the discussions regarding
the consequences of the concession contract termination.”
It added that a fair compensation outcome
was the only possible option for DP World, in line with the principles
of international law.
was the only possible option for DP World, in line with the principles
of international law.
DP World, had in August said that it had sought and obtained protection of its interest in the terminal from a London court.
It did not immediately respond to a request for comment on Monday.
