DP World has threatened legal action against China and Djibouti for building a free trade zone around the Doraleh Container Terminal.
In February, Djibouti terminated its 50-year concession agreement with DP when it seized the terminal after claiming sovereignty violations against the Dubai-based port operator.
DP’s warning comes one week after Djibouti launched the first phase of the China-backed Djibouti International Free Trade Zones (DIFTZ), a key part of China’s One Belt One Road Initiative.
It announced: “This is yet another clear example by the Djiboutian Government of violating its contractual obligations and the rights of foreign investors.
Read more about China's One Belt One Road Initiative with a Port Technology technical paper
“DP World reserves the right to take all available legal actions, including claims for damages against any third parties that interfere or otherwise violate its contractual rights.
“On 22 February 2018, the Government of Djibouti unlawfully seized control of the Terminal, forced DP World employees to leave the country and purported to terminate the Concession Agreement.
“DP World has commenced an arbitration against the Government of Djibouti before the London Court of International Arbitration and is awaiting the outcome of this process.”
