US Court Enforces $200M Award Against Djibouti for Illegal Port Seizure

Photo : Dubai Government Media Office

In 2018, the Government of Djibouti forcibly seized the Doraleh Container Terminal (DCT), a key trade gateway in the Horn of Africa. Despite multiple tribunals ruling in favor of DP World, the Djiboutian government has remained resistant to negotiation and legal rulings.

DP World, a global trade enabler, has welcomed the decision by a US court to enforce a $200 million award against the Government of Djibouti. This decision marks another significant win for DP World in its ongoing legal battle over the illegal seizure of its concession to run the container terminal in the Red Sea country.

Last year, DP World filed proceedings in US courts to enforce a third partial award issued by the London Court of International Arbitration (LCIA) regarding the Doraleh Container Terminal concession. On Tuesday, the US District Court for the District of Columbia granted the unopposed petition to confirm the partial award issued in 2022.

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The DCT was arbitrarily seized by Djiboutian authorities in February 2018. They claimed the agreement with DP World unfairly favored the company. However, these claims were dismissed by judges and arbitrators in both the High Court in England and the LCIA.

Built and operated by DP World, the 1.2 million TEU terminal was widely recognized as the most advanced container terminal on Africa's east coast. It facilitated safe, smooth, and efficient cargo movement in and out of the country. The terminal remains Djibouti’s largest source of revenue and its single biggest employer, creating thousands of jobs for the local community. Under DP World's management, the terminal operated profitably every year.

The legal battle has spanned multiple jurisdictions, with each court ruling in favor of DP World. The damages awarded for lost dividends, breaches of exclusivity, and management fees now total nearly $700 million. Should the expropriation be deemed total, DP World’s claim could exceed an additional billion US dollars.

DP World has pledged to continue its legal fight until the return of its port concession in Djibouti or full compensation for its lost investment is received. A spokesperson for DP World stated, “The authorities in Djibouti have repeatedly shown an utter contempt for the rule of law and the norms of good business, with no respect for legal agreements. Their actions are a warning to investors worldwide who should think twice about the safety of their existing business in Djibouti and the future value of any new investments. Put simply, the Djibouti government is bad for business.”

DP World has a 20-year history in Africa, investing in critical infrastructure to enable trade. In Sub-Saharan Africa, it employs over 27,000 people across 48 countries, with a total container handling capacity of over 2 million TEUs annually in Somaliland, Senegal, Angola, and Mozambique.