Djibouti ends Dubai’s DP World contract to run container terminal

A worker walks in the container terminal of the port of Djibouti, in the tiny Horn of Africa Repubblic of Djibouti. (File Photo: AFP)
Updated 23 February 2018
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Djibouti ends Dubai’s DP World contract to run container terminal

DJIBOUTI/LONDON: Djibouti has ended a contract with Dubai’s DP World, one of the world’s biggest port operators, to run its Doraleh Container Terminal, the president’s office said on Thursday.
“The Republic of Djibouti has decided to proceed with the unilateral termination with immediate effect of the concession contract awarded to DP World,” the office of President Ismail Omar Guelleh said in a statement.
DP World called the move an illegal seizure of the terminal and said it had begun new arbitration proceedings before the London Court of International Arbitration, which has reviewed previous claims related to the dispute.
“We demand that the Government [of Djibouti] will cease its unlawful conduct and continue to work as partners with us,” DP World said in its statement.
The termination of the contract would have no material financial impact on the company, it said.
Last February, the London Court of International Arbitration cleared DP World of all charges of misconduct over a concession to operate the terminal, Dubai’s government said at the time.
In 2014, the government of Djibouti lodged claims accusing DP World, majority-owned by the Dubai government, of illegal payments to secure a 50-year concession for the Doraleh Container Terminal, the Dubai government said.
The president’s office said the contract was ended after the failure to resolve a long-running dispute between the two parties that started in 2012.
It gave no other details on the nature of the dispute, but said it took the decision to protect its “national sovereignty and economic independence.”
“It should be noted that the Doraleh Container Terminal (DCT) will now be under the authority of the Doraleh Container Terminal Management Company which is fully owned by the government,” the statement said.


Saudi minister Al-Falih says Aramco IPO likely in 2019

Updated 45 min 44 sec ago
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Saudi minister Al-Falih says Aramco IPO likely in 2019

  • Energy Minister Khalid Al-Falih: “We are ready, the company (Saudi Aramco) essentially has ticked all the boxes. We’re simply waiting for a market readiness for the IPO.”
  • Khalid Al-Falih: “Most likely it will be in 2019 but we will not know until the announcement has been made. All I could say is stay tuned.”

RIYADH: Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.

“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.

“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”

For almost two years, Saudi officials said the IPO was “on track, on time” for the second half of 2018. But for the first time in March they suggested it could be delayed until 2019.

“Most likely it will be in 2019 but we will not know until the announcement has been made,” Al-Falih said. “All I could say is stay tuned.”

The Aramco IPO would be a once-in-a-generation event for financial markets. Saudi officials said they hope to raise a record $100 billion by selling a 5 percent stake, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese retailer Alibaba Group Holding Ltd. in 2014.