UK court rules to protect DP World deal in Djibouti

Djibouti authorities seized control of the Doraleh Container Terminal (DCT) port from DP World in February of this year. (AFP)
Updated 05 September 2018

UK court rules to protect DP World deal in Djibouti

  • On Feb. 22, the Djibouti authorities seized control of the Doraleh Container Terminal (DCT) port from DP World, which had been awarded the concession in 2006
  • In the run-up to the seizure, the Djibouti government had already attempted to force DP World to renegotiate the terms of the port concession

LONDON: A court in the UK has ruled in favor of Dubai ports operator DP World over a case involving a disputed shipping terminal in Djibouti.
On Feb. 22, the Djibouti authorities seized control of the Doraleh Container Terminal (DCT) port from DP World, which had been awarded the concession in 2006.
In the run-up to the seizure, the Djibouti government had already attempted to force DP World to renegotiate the terms of the port concession.
But the High Court of England and Wales has granted an injunction restraining Djibouti’s port company, Port de Djibouti S.A. (PDSA), from treating its joint venture shareholders’ agreement with DP World as terminated, according to a Dubai Government statement issued Wednesday.
The court also prohibited PDSA from removing directors of the DCT joint venture company who were appointed by DP World, the statement said.
“PDSA is not to interfere with the management of DCT until further orders of the court or the resolution of the dispute by a London-seated arbitration tribunal,” the Dubai Government statement said.
“The High Court’s order follows the unlawful attempt by PDSA to terminate the joint venture agreement with DP World and the calling of an extraordinary shareholders’ meeting on 9 September by PDSA to replace DP World-appointed directors.”
The legal ruling is the third in favor of DP World in the long-running dispute.
In August, Djibouti’s seizure of the Doraleh Container Terminal was ruled illegal by the London Court of International Arbitration.
The ruling will come as a blow to Djibouti and could potentially threaten the country’s ability to attract foreign investment in the future, analysts told Arab News at the time.
The Doraleh port has three berths and an annual capacity of 1.2 million 20-foot equivalent units of container traffic. Under the concession agreement, the Djibouti government had a
67 percent stake while DP World held 33 percent.


Report: 2 Iranian lawmakers arrested for ‘disrupting’ market

Updated 22 August 2019

Report: 2 Iranian lawmakers arrested for ‘disrupting’ market

  • The report did not reveal if they have been charged with any financial crimes
  • Iran arrested several people since 2018 on corruption charges

TEHRAN: Iran’s semi-official Fars news agency says two lawmakers have been arrested for unspecified actions described as “disrupting” the country’s car market.
The report says the two lawmakers — Fereydoun Ahmadi and Mohammad Azizi — were initially taken to the Evin prison in Tehran but they were later released for about $85,000 in bail.
The report didn’t specify if the two have been charged with any financial crimes.
Iran is trying to crack down on corruption and has arrested several persons since 2018. Two prominent local businessmen have been hanged.
Iran’s economy nosedived since the US pullout from the nuclear deal last year. Prices of cars have skyrocketed as Western manufacturers pull out of the country and foreign-produced parts are becoming harder to find. China is trying to fill the void.