Doraleh container terminal at the Port of Doraleh in Djibouti. Credit: PRNewswire / Government of the Republic of Djibouti.

The Government of Djibouti has nationalised all shares held by Port de Djibouti (PDSA) in Doraleh Container Terminal (DCT).

The move is expected to further intensify an ongoing row with United Arab Emirates (UAE) based port operator DP World, which owns a 33.33% stake in DCT.

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The terminal was operated by DP World since 2006 under a 50-year concession granted by the Government of Djibouti until the concession was terminated in February.

The Government of Djibouti said in a statement: “The Republic of Djibouti has decided to nationalise with immediate effect all the shares and social rights of PDSA in the DCT company to protect the fundamental interests of the Nation and the legitimate interests of its partners.”

Djibouti accused DP World of employing DCT to fulfil its own interest, causing harm to the country’s growth and stalling infrastructure development.

The decision comes a month after Djibouti’s cancellation of DP World’s contract in February was termed ‘unlawful’ by a UK tribunal.

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“The decision comes a month after Djibouti’s cancellation of DP World’s contract in February was termed ‘unlawful’ by a UK tribunal.”

In September, the High Court of England and Wales enforced the shareholders’ agreement and forbid PDSA from sacking the directors of DCT.

However, Djibouti claimed that DP World had gone to the court without having a discussion about the matter with PDSA.

In July, PDSA also terminated the shareholders (JV) agreement reached with DP World for operating the Doraleh container terminal.

In March, even Somalian Parliament passed a resolution to cancel a port agreement signed with DP World, banning the port operator to operate in Somalia.