Seizure Ruled Illegal
The fight over the Doraleh Container Terminal just hit another milestone. On September 29, the London Court of International Arbitration ruled that Djibouti’s 2018 takeover of the port was illegal. DP World’s 50-year concession deal? Still valid.
But here’s the twist. The court didn’t order damages against Port de Djibouti SA (PDSA). Instead, it put the blame squarely on the government. For DP World, that means the $685 million in earlier awards is still unpaid.
Djibouti’s Spin
Djibouti’s leaders were quick to claim victory. Their headline: DP World’s case was “entirely dismissed.” Sounds convincing, right? Except it’s not the full story.
What the court dismissed were claims only against PDSA. The bigger claims—nearly $1 billion against the government and China Merchants Port Holdings—are still very much alive.
It’s like celebrating a win when the match isn’t even over.
DP World Responds
DP World pushed back, reminding everyone that multiple courts have already said the seizure was illegal. This ruling didn’t change that.
One company spokesperson summed it up: Djibouti can’t just rip up contracts it signed and expect investors to shrug it off.
What’s Really at Stake
At the heart of this? Money and control.
- DP World wants compensation for lost revenues since 2018
- Djibouti hasn’t paid a cent of the $685 million already awarded
- Another $1 billion in claims is still pending
It’s like sending a bill that never gets paid—and watching the total climb higher.
A Warning to Investors
Industry experts say this fight is sending a chilling message. If a government can ignore contracts and international rulings, what does that mean for anyone thinking of investing in ports or infrastructure there?
For now, Djibouti still runs Doraleh. DP World still waits for its money. And the world is watching what happens next.
