Dubai’s DP World wins ruling against Djibouti over seized port

DP World, which is majority-owned by the Dubai government in the United Arab Emirates, operates nearly 80 marine and inland terminals around the world. (AFP)
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Updated 14 January 2020

Dubai’s DP World wins ruling against Djibouti over seized port

  • London tribunal ordered Djibouti to restore its rights and benefits under a 2006 concession agreement
  • DP World operates nearly 80 marine and inland terminals around the world

DUBAI: DP World said Tuesday it has won another arbitration ruling against Djibouti over the African country’s seizure of a container terminal managed by the Dubai-based global port operator.
The company said a London tribunal ordered Djibouti to restore its rights and benefits under a 2006 concession agreement governing the Doraleh port within two months or pay damages. DP World estimates it has lost $1 billion since Djibouti took over the terminal in February 2018.
DP World, which is majority-owned by the Dubai government in the United Arab Emirates, operates nearly 80 marine and inland terminals around the world.
Djibouti seized the container terminal after DP World created another corridor for imports to landlocked Ethiopia in Somaliland, endangering Djibouti’s near-monopoly on Ethiopia’s imports.
Ethiopia recently became a 19 percent shareholder in Somaliland’s Berbera port, where DP World holds a 51 percent stake. Somaliland, a breakaway northern region of Somalia, holds the remaining 30 percent.
The expansion into Somaliland came alongside plans by the United Arab Emirates to build a naval base in Berbera, part of its expanding military presence in the region.
Djibouti’s port alone accounts for 95 percent of Ethiopia’s imports. With a population of 110 million people, Ethiopia is the largest economy in the Horn of Africa.
DP World said the tribunal ruled that Djibouti broke the law when it removed the company from management of the terminal and transferred the terminal’s assets to a state-run company. The Dubai-based company said Djibouti has ignored five previous rulings in its favor despite the fact that the contract is governed by English law.


Big oil feels the heat on climate as industry leader promises: ‘We will be different’

Updated 22 January 2020

Big oil feels the heat on climate as industry leader promises: ‘We will be different’

  • Trump singles out ‘prophets of doom’ for attack
  • Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal

LONDON: Teenage environmental activist Greta Thunberg slammed inaction over climate change as the global oil industry found itself under intense scrutiny on the opening day of the World Economic Forum in Davos.

The teenage campaigner went head to head with US President Donald Trump, who dismissed climate “prophets of doom” in his speech.
She in turn shrugged off the US president’s pledge to join the economic forum’s initiative to plant 1 trillion trees to help capture carbon dioxide.
“Planting trees is good, of course, but it’s nowhere near enough,” Thunberg said. “It cannot replace mitigation. We need to start listening to the science and treat this crisis with the importance it deserves,” the 17-year-old said.
The 50th meeting of the World Economic Forum was dominated by the global threat posed by climate change and the carbon economy.
The environmental focus of Davos 2020 caps a year when carbon emissions from fossil fuels hit a record high, and the devastating effects of bushfires in Australia and other climate disasters dominated the news.
Oil company executives from the Gulf and elsewhere are in the spotlight at this year’s Davos meeting as they come under increased pressure to demonstrate how they are reducing their carbon footprint.
“We are not only fighting for our industry’s life but fighting for people to understand the things that we are doing,” said Vicki Hollub, CEO of Occidental, the US-based oil giant with extensive oil operations in the Gulf. “As an industry when we could be different — we will be different.”

‘Planting trees is good, but nowhere near enough,’ activist Greta Thunberg told Davos. (Shutterstock)

She said the company was getting close to being able to sequester significant volumes of CO2 in the US Permian Basin, the heartland of the American shale oil industry which is increasingly in competition with the conventional oil producers of the Arabian Gulf.
“The Permian Basin has the capacity to store 150 gigatons of CO2. That would be 28 years of emissions in the US. That’s the prize for us and that’s the opportunity. People say if you’re sequestering in an oil reservoir then you are producing more oil, but the reality is that it takes more CO2 to inject into a reservoir than the barrel of oil that it makes come out,” Hollub said.
The challenge Occidental and other oil companies face is to make investors understand what is happening in this area of carbon sequesteration, she added.
The investment community at Davos is also looking hard at the oil industry in the face of mounting investor concerns.
Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal. It accused some of these groups of failing to live up to the World Economic Forum goal of “improving the state of the world.”