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Home » London Tribunal Rules Djibouti’s Seizure of Port Unlawful

London Tribunal Rules Djibouti’s Seizure of Port Unlawful

A row of red and white striped shipping cranes along a shoreline stacked with blue shipping containers
Photo: iStock / HomoCosmicos
October 3, 2025
SupplyChainBrain

The London Court of International Arbitration (LCIA) has issued its final ruling in a long-running dispute between global port operator DP World and Djibouti’s state-owned Port de Djibouti SA (PDSA), confirming that Djibouti’s 2018 seizure of the Doraleh Container Terminal was unlawful.

The tribunal declined to award damages against PDSA, noting that responsibility lay with the government of Djibouti. However, DP World’s claims of roughly $1 billion against the government and its partner China Merchants Port Holding remain active. Existing arbitration awards totaling $685 million in favor of DP World also remain enforceable, although the government has yet to comply.

The LCIA reaffirmed that DP World’s 50-year concession agreement for Doraleh signed in 2006 is legally valid. Previous efforts by PDSA to terminate the joint venture agreement were found unlawful in earlier rulings. While PDSA was awarded costs in this latest case, DP World maintains that the port still owes it significant sums from prior decisions.

This ruling concludes the LCIA arbitration process between DP World and PDSA but does not resolve the broader conflict. DP World said it will continue pursuing legal action to secure compensation and enforce its rights against both the government of Djibouti and China Merchants.

The company also rejected public statements by Djibouti officials, arguing that claims the dispute has ended and that its $1 billion demand was dismissed in full misrepresent the facts.

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