Djibouti Opens Up on Why It Cancelled Dubai’s DP World Contract

Doraleh Container Termina, Djibouti

March 9, 2018//-Djibouti has explained why it terminated its contract with Dubai’s DP World, one of the world’s biggest port operators, to run the country’s Doraleh Container Termina.

In a press release issued by the Government of Djibouti today noted that the termination, on February 22, 2018, of the concession contract previously awarded to DP World regarding the operation of Doraleh Container Terminal (DCT), the Republic of Djibouti reaffirms its strategic wish to preserve and develop container terminal activities, respecting the rule of law and in the best interests of all stakeholders.

The Société de Gestion du Terminal à Conteneurs de Doraleh (SGTD), an entity created to take over the activities of Doraleh Container Terminal, is a public company whose sole shareholder is the State of Djibouti. Its primary purpose is to defend the sovereign interests of the nation. SGTD will also be in charge of promoting the terminal’s activities with a world-class standard of service, according to the release.

“With the termination of the contract and the end of the aberrant restrictions imposed by DP World on the activity of DCT, the port recovers its ambition and potential. DCT intends to become the major port in the Red Sea, especially in the transshipment business”.

It stands out as one of the essential stops between Asia and the rest of the world, especially with regards to trade flows to the major ports of the East African coast, including Mombassa, Dar es Salaam, Maputo and Durban.

Transshipment activities have always been part of DCT’s strategic plan. The project was designed to handle 1,600,000 containers / year. But the former operator wanted to limit it to import-export traffic to the local market and to Ethiopia, whose cumulative volume of annual activities represents about 800,000 containers / year.

Thanks to its regionally unparalleled productivity (with average unloading speed of 35 containers per hour and per gantry), its reduced time at berth, prolonged expertise and exceptional location, DCT has a significant comparative advantage on the trade routes between Europe, Asia and Africa, according to the government press release.

The new agreement signed on March 5 with Singaporean shipping company Pacific International Lines (PIL), which will raise by a third the amount of cargo handled at the port, that is to say an additional volume of 300,000 containers / year, marked a strong upturn in activity.

This agreement reflects the renewed confidence of operators and Djibouti’s willingness to diversify its partners. Other similar strategic players have already expressed their desire to be involved in the expansion of DCT.

The Government of the Republic of Djibouti guarantees all its historical partners, private and public, including friendly great nations, of its commitment to openness, its willingness to promote and defend the interests of everyone in the respect of the law and in fairness.

The ultimate goal remains to invest fully, strongly, in the attractiveness of DCT and other port facilities in the country. These infrastructures are fundamental elements of the national economic and social development plan of Djibouti.

African Eye Report


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