Documents revealed that Dubai Ports World (DP World), the world's largest port operator, is seeking $210.2 million in compensation from Djibouti over an ongoing legal dispute on port concession rights.
There has been a dispute between DP World and Djibouti since 2012 regarding a concession granted to the company to operate the Doraleh container terminal, located in the Horn of Africa, on prominent trade routes at the southern entrance to the Red Sea.
The government of Djibouti denied DP World access to the terminal, despite the fact that the London Court of International Arbitration (LCIA) ruled that the concession granted to the company was legal and binding, and ordered Djibouti to hand DP World its rights.
DP World is now seeking compensation for the estimated loss of revenue and management fees from 2018 to 31 March 2021 through the LCIA, while attempting to restore its concession right.
A document revealed that the company estimates its losses at more than $1 billion, including future profits should it fail to regain access to the concession rights.
The LCIA is expected to issue a verdict on the company's compensation claims on 29 June.