• Tuesday, Jan 25, 2022
  • Last Update : 03:32 am

Dubai accuses Djibouti of illegally seizing key Africa port

  • Published at 08:32 pm February 24th, 2018
Dubai accuses Djibouti of illegally seizing key Africa port

Dubai has said it is seeking international arbitration against Djibouti after the Horn of Africa nation terminated its concession at a key port that is the main transit route to landlocked Ethiopia.

The emirate said the Djiboutian government's termination on Thursday of the 50-year concession it granted to Dubai-owned DP World to operate the Doraleh container terminal in 2006 was "illegal."

Announcing its decision on Thursday, Djibouti's transport ministry said that it was merely implementing a law adopted in November last year that "sets a legal framework allowing for the renegotiation, if necessary, of contracts already concluded dealing with the management or exploitation of strategic infrastructure."

"In the current case, the contract of concession for Doraleh container terminal contains elements that are in flagrant contravention of state sovereignty and the higher interests of the nation," it said.

But Dubai countered that the Djiboutian legislation flew in the face of international law, as repeatedly upheld by arbitration tribunals.

"The illegal seizure of the terminal is the culmination (of) the government's campaign to force the DP World to renegotiate the terms of the concession," the government said late Thursday.

"Those terms were found to be 'fair and reasonable' by a London Court of International Arbitration tribunal," it added.

"DP World has commenced arbitration proceedings before the London Court of International Arbitration to protect their rights, or to secure damages and compensation for their breach or expropriation."

The Dubai government said it found Djibouti's conduct to be "particularly oppressive and cynical" as two separate tribunals had recently dismissed its allegations of corruption in the awarding of the concession.

The tiny nation of Djibouti has become a major strategic player because of its position on the Bab al-Mandab strait, the key shipping lane to Europe from the Gulf and Asia beyond.

The United States, France, Italy, Spain, Saudi Arabia, Japan and China all have military bases in the country.

China's base is immediately adjacent to the Doraleh terminal.

The port is also the terminus for a Chinese-built railway between Djibouti and the Ethiopian capital Addis Ababa which opened in 2016.

More than 90% of the trade of Africa's second most populous nation passes through Djibouti.

DP World has secured a string of port concessions in Africa, including one for Berbera in breakaway Somaliland up the Red Sea coast from the Bab al-Mandab.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail