Application to have high court in Djibouti rule international adjudications null and void contravenes global legal system and threatens investment

DUBAI, UAE - Media OutReach - 1 August 2019 - Adecision to be taken later this week by the government of Djibouti to apply tothe country's high court to rule all previous international adjudications nulland void is a complete disregard for and contravention of the global legalsystem and existing contracts.

The move isproof of Djibouti's complete disregard for recognized legal practice andrespect for contracts calling into question any investment in the country bothnow and in the future.

DoralehContainer Terminal SA (DCT), a Djibouti port operator owned 33.34% by DP WorldGroup, and 66.66% by Port de Djibouti S.A., an entity of the Republic ofDjibouti, has been successful in five previous substantial rulings over thelast three years by the London Court for International Arbitration in Londonand the High Court of England and Wales. All have been ignored by Djiboutidespite the original contract for the concession being written under Englishlaw.  

The mostrecent decision by an LCIA Tribunal on 29 March this year found that bydeveloping new container port opportunities with China Merchants Port HoldingsCo Limited (China Merchants), a Hong-Kong based port operator, Djibouti hasbreached DCT's rights under its 2006 Concession Agreement to develop acontainer terminal at Doraleh, in Djibouti, specifically, its exclusivity overall container handling facilities in the territory of Djibouti. 

TheTribunal ordered Djibouti to pay DCT $385.7 million plus interest for breach ofDCT's exclusivity by development of container facilities at Doraleh MultipurposeTerminal, with further damages possible if Djibouti develops a planned DoralehInternational Container Terminal (DICT) with any other operator without theconsent of DP World.

TheTribunal also ordered Djibouti to pay DCT $88 million for historic non-paymentof royalties for container traffic not transferred to DCT once it becameoperational. Djibouti is also ordered to pay DCT's legal costs.

The Tribunal's Award recognises that the 2006 Concession Agreement remainsvalid and binding, as has also been confirmed by another LCIA Tribunal and theEnglish courts.  DCT and DP Worldcontinue to seek to uphold their legal rights in a number of legal fora,following Djibouti's unlawful efforts to expel DP World from Djibouti andtransfer the port operation to Chinese interests.

Litigationagainst China Merchants also continues before the Hong Kong courts. DP Worldhas previously issued public notices, following the confirmation of thevalidity of the 2006 Concession Agreement in a judgment in 2018, warning othersagainst interfering with its and DCT's concession rights.

About DP World:

DPWorld is a leading enabler of global trade and an integral part of the supplychain. 

Weoperate multiple yet related businesses -- from marine and inland terminals,maritime services, logistics and ancillary services, to technology-driven tradesolutions.

Wehave a portfolio of over 150 operations in over 45 countries across sixcontinents, with a significant presence in both high-growth and mature markets.We aim to be essential to the bright future of global trade, ensuring thateverything we do contributes positively and sustainably to both the economy andsociety.

Ourdedicated team of more than 46,000 employees from 120 countries cultivates long-standingrelationships with governments, shipping lines, importers and exporters,communities, and many other important constituents of the global supply chain,providing quality value-added services today and tomorrow.

Containerhandling is the company's core business and generates more than 50% of itsrevenue. In 2018, DP World handled 71.4 million TEU (twenty-foot equivalentunits) across our portfolio. With its committed pipeline of developments andexpansions, the current gross capacity of 91 million TEU is expected to rise inline with market demand.

Bythinking ahead, foreseeing change and innovating, DP World aims to create themost productive, efficient and safe trade solutions globally.

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