Wednesday, February 22, 2017

DP World Cleared of Misconduct in London Court  

Government of Djibouti Must Pay Costs of Failed Prosecution

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Shipping News Feature UK – DUBAI – DJIBOUTI – The London Court of Arbitration has cleared global port operator DP World of charges of misconduct in connection with the award of a 50-year concession to operate the Doraleh Container Terminal (DCT) in Djibouti.

The claim, brought by the government of the East African country in 2014, accused DP World of illegal payments to the head of the country’s port and free zone authority, Abdourahman Boreh, to secure the concession to run DCT in 2006. In March 2016, the UK High Court dismissed all charges against Boreh brought against him by the Government of Djibouti, related to his dealings with DP World.

The London Court of International Arbitration has now fully exonerated DP World, stating in the Partial Final Award that:

  1. The claimants’ claims all fail and are dismissed
  2. The claimants must bear all costs of the arbitration to date
  3. The claimants must pay the legal and other costs of the respondents in the arbitration upon an indemnity basis and in an amount to be determined by this tribunal in a further Award

Launched in 2009, the Doraleh Container Terminal was built and is operated by DP World. Boasting direct road links to neighbour Ethiopia the port lies on the major east-west trade route and provides a secure hub within the region for transhipment and relay activities. The terminal is Djibouti’s biggest employer with almost 1,000 employees of whom 99% are Djibouti nationals. Throughout arbitration proceedings, DP World has continued to manage the port.

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