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DP World files lawsuit against China Merchants

Dubai - DP World, the port operator based in Dubai, has filed a lawsuit against the state-owned China Merchants Port Holding, about the controversial Terminal project in Djibouti

Dubai - DP World, the port operator based in Dubai, has filed a lawsuit against the state-owned China Merchants Port Holding, about the controversial Terminal project in Djibouti.

The lawsuit seeks damages, interest and declaration that China Merchants unlawfully procured or induced Djibouti’s breaches of its agreement with DP World, reports the Khaleej Times.

A senior Djibouti government official has dismissed the accusation that the government was “illegally induced” to breach the contract by a Chinese company.

In February, the Djibouti government terminated the 50-year concession agreement for the Doraleh Container Terminal. The terminal was jointly owned by DP World (33.3 percent) and the Government of Djibouti’s port company Port de Djibouti S.A. (PDSA) (66.6 percent). In 2013, China Merchants Port Holdings bought a 23.5 percent of PDSA from Djibouti.

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