Officials from the government of Djibouti are engaging in talks with Paris based Shipping Company to build new terminal container so as to improve the country’s sea transport.
The Company which was identified as CMA CGM is expected to develop the port with an initial cost of $660 million if it secures the agreement.
Aboubakar Omar Hadi, chairman of the Djibouti Ports and Free Zone Authority (DPFZA) said the government hopes to fill gap left by Dubai based DP World operator whose deals to operate in Doraleh Port was terminated.
Hadi noted that Djibouti carried out initiates to buy out DP World’s stake in an existing container terminal to end a row with the Dubai port operator and avoid arbitration.
In an interview with Reuters, Hadi said new container terminal project could break ground as early as September with construction expected to take 24 months.
“We are going to build DICT, Doraleh International Container Terminal. This is a new plan,” he said. “We are in discussions with CMA CGM.”
In February, Djibouti president, Ismail Omar Guelleh ended his country’s contract with Dubai’s DP World, a move which the company termed as illegal.
“The Republic of Djibouti has decided to proceed with the unilateral termination with immediate effect of the concession contract awarded to DP World,” the statement from the office of the President Guelleh said.
President Guelleh said the officials of DP World failed to resolve a long-running dispute between Djibouti and the company.
In 2014, the government of Djibouti launched a suit case against DP World saying the company paid illegal money to Abdourahman Boreh, the former head of the nation’s port authority in order to secure the 50-year concession for the port.
In 2016, the government of Djibouti inked a 30-year concession agreement with DP World to operate the terminal.
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