The African state of Djibouti took full control of its Red Sea container port from DP World, the latest twist in a long-running dispute between the partners.
Djibouti nationalised DP World’s shares in the Doraleh Container Terminal, ending a concession agreement that it claimed was “severely prejudicial to the fundamental interests of the Republic of Djibouti.”
The Dubai-based logistics company had a 33.33% stake in the DCT company that has operated Doraleh since 2006, but had taken de facto control of the terminal, the government said. Djibouti originally seized Doraleh in February after accusing DP World of deliberately under-using the port in favour of other regional terminals, including Berbera in Somaliland, which DP World also runs.
“In practice, DCT has been operated, through the shareholders’ agreement, for the sole purpose of serving DP World’s interest,” the government said.
DP World was not immediately available for comment but has previously denied the allegations and stated that Djibouti is violating its contractual obligations.
The dispute is part of a wider strategic maneuvering in which several countries and companies are jostling for control of ports and shipping routes. Positioned on the Red Sea, a narrow waterway separating the east coast of Africa from the Gulf and a thoroughfare for 30 per cent of world shipping cargo, Doraleh is one of East Africa’s busiest ports and the key transit point for imports to Ethiopia, Africa’s second most populous country.
