The operation of a crucial port in the African country of Djibouti has been the subject of a protracted legal dispute, according to Dubai-based shipping firm DP World, which claims to have won another decision.
AP – DUBAI, United Arab Emirates The operation of a crucial port in the African country of Djibouti has been the subject of a protracted legal dispute, which Dubai-based shipping firm DP World announced Tuesday it had won another decision.
DP World, a business located in Dubai, reported that an appeals court in Hong Kong granted its plea to keep its legal action against China Merchants Port Holdings in Hong Kong courts rather than have it moved to Djibouti.
The government of Djibouti was allegedly successfully pressured by China Merchants to kick DP World out of the nation and transfer over the Doraleh Container Terminal to the Hong Kong-based company, according to DP World. Additionally, it charges China Merchants with running other ports and free zones against DP World’s exclusive rights.
An inquiry for comment was not immediately answered by China Merchants.
DP World is suing for untold amounts of money in damages. The business claimed that it has already received almost $686.5 million in compensation from international courts and tribunals, and the concession it received in 2006 to run the port is still in effect.
According to DP World, the Doraleh Container Terminal has made a profit every year since it opened and is Djibouti’s greatest employer and a revenue generator.
After DP World opened a second route in Somaliland for imports into landlocked Ethiopia, risking Djibouti’s near-monopoly on Ethiopian imports, Djibouti seized control of the container terminal.
95% of Ethiopia’s imports pass through the port of Djibouti alone. Ethiopia has 110 million inhabitants and the biggest economy in the Horn of Africa.
Nearly 80 maritime and inland ports are run by DP World, which is majority owned by the Dubai government in the United Arab Emirates.
Read more Business News , Today Politics Headline , Today Finace News Update ,Latest Social News Update , World Highlight , Entertainment Latest News , Today Sports News Update , Latest Education Update , Real Estate Today Update