In a landmark ruling, the London Court of International Arbitration (LCIA) has declared that the government of Djibouti acted unlawfully when it seized the Doraleh Container Terminal (DCT) from Dubai-based logistics giant DP World in 2018. The tribunal confirmed that DP World’s 50-year concession agreement for the port remains valid and binding, while Djibouti owes the company hundreds of millions in damages. This decision marks a significant milestone in a seven-year legal battle that has become one of Africa’s most prominent international investment arbitration cases. The dispute, however, is far from resolved, as DP World’s broader $1 billion claims against the Djibouti government and its Chinese partner, China Merchants Port Holdings, remain active. The LCIA ruled that the 2018 seizure was unlawful, rejecting Djibouti’s claim of having the right to terminate the concession. However, the court declined to award damages against Djibouti’s state-owned Port de Djibouti SA (PDSA), attributing the harm directly to the government. DP World has emphasized that the case underscores the importance of upholding international law and the sanctity of contracts, warning that Djibouti’s defiance of arbitration rulings undermines investor confidence and damages the country’s reputation. The company has vowed to pursue all legal avenues to recover damages and enforce prior awards, highlighting the broader implications of the case for global investors and economic development in Africa.
London court rules Djibouti illegally seized DP World port, $1 billion dispute drags on
