PR97919

DUBAI, United Arab Emirates, Sept. 20, 2022 /PRNewswire=KYODO JBN/ -

    DP World has been in litigation with China Merchants Port Holdings in Hong

Kong since 2019 over the unlawful interference with its rights in Djibouti.

    During this time, China Merchants has unsuccessfully sought to move the

case to the courts of Djibouti.

    Ruling means DP World can finally move to a full hearing on the merits

against China Merchants before Hong Kong Courts.

    DP World has won the

latest in a string of court rulings, as it defends its rights as shareholder and

concessionaire in Djibouti's Doraleh Container Terminal.

    The Court of Appeal of Hong Kong has dismissed the latest request by China

Merchants Port Holdings seeking permission to file a second appeal before the

Court of Final Appeal, against its previous decision that DP World's suit

against the company should be heard before Hong Kong Courts, and not the courts

of Djibouti.

    DP World and joint venture company Doraleh Container Terminal are bringing

multi-billion dollar claims against China Merchants alleging that it induced the

government of Djibouti to expel DP World from the country and hand over the

Doraleh terminal to China Merchants. China Merchants investments in other ports

and free zone projects in Djibouti, in breach of DP World's exclusivity rights,

will also be examined.

    China Merchants surprisingly argued that the case should be heard by the

Djibouti courts, despite Hong Kong being its home jurisdiction. The High Court

of Hong Kong agreed with DP World's arguments that the case should proceed in

Hong Kong and ordered China Merchants to pay its legal costs. The Court of

Appeal dismissed an appeal against that decision, and has now refused to grant

China Merchants permission to file a second appeal before the Court of Final

Appeal.

    The Hong Kong court ruling follows a ruling in January 2022, by the London

Court

of International Arbitration (LCIA) against the Republic of Djibouti, awarding

interim damages of US$ 200 million for damages caused over the period between

for the period 23 February 2018 to 31 December 2020. That was the eighth

decision by an international court or tribunal in favour of DP World in its

ongoing dispute with the Republic of Djibouti, and total damages due to DP World

now amount to US$ 686.5 million, plus accruing interest, while the Concession

itself remains legally in force.

    The Doraleh Container Terminal is the largest employer and biggest source of

revenue in Djibouti and has operated at a profit every year since it opened.

    DP World is a leading provider of worldwide smart end-to-end supply chain

logistics, enabling the flow of trade across the globe. With a portfolio of 295

businesses in 78 countries across six continents, with a significant presence in

both high-growth and mature markets, the company enjoys strong relationships

with governments around the world, working in partnership to strengthen

economies through investment in infra-structure and the implementation of smart

trade solutions.

    Source: DP World