London Court Relieves Port of Djibouti from Damages Claimed by DP World Over Doraleh Container Terminal
On 25 September 2025, the London Court of International Arbitration (LCIA) issued it final ruling in the case between DP World and Port of Djibouti SA (PDSA). DP World filed a case against PDSA claiming USD one billion in damages due to the unilateral and illegal transfer of the rights over the Doraleh Container Terminal to China Merchants Port in 2018.
The London Court ruled that since the transfer was effected by the Government of Djibouti, therefore, despite being a state-owned enterprise is private entity under the law, PDSA cannot be held responsible for terminating the contract with DP World and is thus not liable to damages.
On 30 September 2025, the spokesperson from the Government of Djibouti issued a communique that welcomed the ruling from LCIA, calling it a victory and qualifying the claim by DP World as abusive and unfounded. The spokesperson did not hide a certain level of satisfaction that DP World will have to bear the costs of the arbitration and even reimburse PDSA’s legal expenses, amounting to USD 1.85 million.
“Djibouti’s claims are at odds with reality, proven time and again in independent international tribunals. It is extraordinary that the Government continues to spread a false narrative despite overwhelming evidence. This undermines investor confidence, damages Djibouti’s reputation, and ultimately hurts its people. DP World has successfully invested billions across Africa and globally, creating jobs, infrastructure and growth. But this case is bigger than DP World — it is about whether governments can tear up binding contracts and ignore international law without consequence. Djibouti’s behaviur is a clear warning to serious investors.”
DP World Spokesperson
Responding to the Government of Djibouti’s narrative on 2 October 2025, a DP World’s spokesperson stressed that its other case against the Government of Djibouti is still ongoing. The spokesperson emphasized that DP World did receive an arbitration award of USD 685 million from the Government of Djibouti and the refusal of the Government of Djibouti to honor the compensation is a show of contempt for the rule of law and a complete disregard of international business standards.
DP World underlined that the its 50-year concession for Doraleh is legally binding and the unilateral termination without compensation was illegal. DP World thus intends to exert its ‘lawful rights’ against the Government of Djibouti and China Merchants Port for damages and prejudices incurred.
On the other hand, the Government of Djibouti reiterates its long-standing position that only a direct negotiation and agreement between the Republic of Djibouti and the DP World — one that safeguards mutual interests while ensuring Djibouti’s sovereignty over this strategic infrastructure — could have a chance to bring this commercial dispute to a satisfactory close.