Doraleh Multipurpose Port in Djibouti Djibouti Ports and Free Zones Authority
Ports & Terminals

Court finds Djibouti Government guilty of seizing terminal built by DP World

Jens Karsten

The London Court of International Arbitration (LCIA) in the UK has issued its final ruling in the case between DP World and the Djibouti Government-owned Port de Djibouti (PDSA).

The tribunal confirmed that Djibouti’s 2018 seizure of the Doraleh Container Terminal (DCT) was unlawful, DP World said in a press release dated October 1, 2025.

Although the tribunal declined to award damages against PDSA on the basis that the harm was caused by the Government of Djibouti, not PDSA, DP World’s claims worth around US$1 billion against the government and its partner China Merchants Port Holding remain active.

DP World added that its existing arbitration awards of approximately US$685 million against the Government of Djibouti also remain valid and enforceable. The government has so far refused to honour these binding awards, which DP World said is a clear act of contempt for the rule of law and international business standards.

The LCIA also confirmed that DP World’s 50-year concession agreement for Doraleh is legally valid and still binding, and the attempt to terminate it is unlawful. DP World said that the Djibouti Government continues to block the company from exercising its rights at the terminal.

PDSA was awarded costs in this specific proceeding. However, earlier rulings by the LCIA found PDSA’s attempt to terminate DP World’s 2006 joint venture agreement for DCT were unlawful. The net effect is that PDSA still owes DP World a substantial sum.

DP World said the ruling brings the LCIA arbitration proceedings to a close but does not end DP World’s wider dispute.

The company added that it will pursue all available legal avenues to secure fair compensation and enforce its rights against the Government of Djibouti and China Merchants.

DP World said also rejects false claims made by Djibouti’s leadership in response to the ruling. In particular, the company said that Djibouti President Ismail Omar Guelleh’s recent video statement misrepresents the facts of the case and ignores numerous binding decisions by neutral courts.