DP World to pursue legal action over disputed Djibouti port

The decision by Djibouti to nationalize the Doraleh Container Terminal came after the government scrapped a 50-year concession contract with DP World. (Reuters)
Updated 11 September 2018

DP World to pursue legal action over disputed Djibouti port

  • The Dubai-based firm said that nationalizing Doraleh amounted to an attempt to flout an injunction of the English High Court
  • The disputed terminal is an essential facility for supplies to neighboring landlocked Ethiopia and is located in the strategic Horn of Africa

DUBAI: Dubai’s global port operator DP World said Tuesday it will pursue all “legal means” to defend its claim to a Djibouti terminal after the African nation nationalized the facility.
The decision by Djibouti on Sunday to nationalize the Doraleh Container Terminal came after the government scrapped a 50-year concession contract with DP World, triggering a dispute between the two sides.
DP World said it has won three rulings from Britain-based courts over the matter, most recently an injunction at the High Court in London on August 31.
The Dubai-based firm said Tuesday that nationalizing Doraleh amounted to “an attempt to flout an injunction of the English High Court,” which barred Djibouti authorities from taking control over the facility.
The concession agreement between DP World and Djibouti signed in 2006 is governed by English law and through the London Court of International Arbitration, the port operator said.
The disputed terminal is an essential facility for supplies to neighboring landlocked Ethiopia and is located in the strategic Horn of Africa.
The Djibouti government had a two-thirds stake in the venture.
The terminal had been run by DP World since 2006, but in late February Djibouti canceled the contract.
Currently, Hong Kong-based China Merchants Port Holdings Company owns a 23.5-percent stake in the facility.


China's aviation regulator raised concerns with Boeing on 737 MAX design changes

Updated 12 December 2019

China's aviation regulator raised concerns with Boeing on 737 MAX design changes

  • China is reviewing the airworthiness of the plane
  • China was first country to ground plane in March

BEIJING: China’s aviation regulator raised “important concerns” with Boeing Co. on the reliability and security of design changes to the grounded 737 MAX, it said on Thursday, but declined to comment on when the plane might fly again in China.
China is reviewing the airworthiness of the plane based on proposed changes to software and flight control systems according to a bilateral agreement with the United States, Civil Aviation Administration of China (CAAC) spokesman Liu Luxu told reporters at a monthly briefing.
He reiterated that for the plane to resume flights in China, it needed to be re-certified, pilots needed comprehensive and effective training to restore confidence in the model and the causes of two crashes that killed 346 people needed to be investigated with effective measures put in place to prevent another one.
China was the first country to ground the 737 MAX after the second crash in Ethiopia in March and had set up a task force to review design changes to the aircraft that Boeing had submitted.
The US Federal Aviation Administration (FAA) will not allow the 737 MAX to resume flying before the end of 2019, its chief, Steve Dickson, said on Wednesday.
Once the FAA approves the reintroduction into service, the 737 MAX can operate in the United States, but individual regulators could keep the planes grounded in other countries until they complete their own reviews.
“Due to the trade war, the jury is still out on when China would reintroduce the aircraft,” said Rob Morris, Global Head of Consultancy at Ascend by Cirium.
Chinese airlines had 97 737 MAX jets in operation before the global grounding, the most of any country, according to Cirium Fleets Analyzer.