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Old July 11th, 2018, 11:12 AM   #81
Ras Siyan
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Capacity limitations at the Djibouti oil terminal has prompted the Ethiopian government to start planning to build an oil terminal at the port of Djibouti, The Reporter has learnt.

The Ethiopian Petroleum Supply Enterprise (EPSE) receives the petroleum products from oil tanker vessels and stores it in the oil terminal until it is loaded on fuel tanker trucks that transport the products to main land Ethiopia.

CEO of the Ethiopian Petroleum Supply Enterprise, Tadesse Hailemariam, told The Reporter that the Djibouti Horizon Fuel Terminal (DHT) has capacity limitation to handle Ethiopia’s increasing fuel imports. “We are having a tough time at the Horizon Terminal due to capacity limitations. The terminal is now unable to accommodate the increasing petroleum imports. We are suffering,” he told The Reporter.

The Djibouti Horizon Fuel terminal tank farm has a total of 31 tanks with a storage capacity of 300,000cu.m of petroleum products. The terminal has various tanks for gasoline (benzene), gas oil (diesel), kerosene and jet fuel. DHT Company has allocated half of the tank farm more than 150,000 cu.m of petroleum storage capacity for Ethiopia. EPSE uses the facility to store 72,000cu.m of diesel, 70,000cu.m jet fuel, gasoline 10,000cu.m and 10,000cum fuel oil. “But this is now not enough for us to handle the growing petroleum imports,” Tadesse said.

The military strength including the US, France and China have military bases that consumes large amount of fuel for their aircraft and naval ships. The military bases use DHT to satisfy their petroleum demands.

According to Tadesse, the Ethiopian government is now planning to jointly develop a new oil terminal with the government of Djibouti. The planned tank farm will have the capacity to store 30,000cu.m of petroleum products and a JT pipe that receives oil from tanker vessels. Preliminary study undertaken by ESPE indicates that the planned oil terminal could cost to the tune of USD 220 million.

Ethiopian fuel import has been growing at a rate of 10 percent every year and reached three million metric tons valued at three billion dollars. The country’s daily average consumption is diesel 80,000 cu. M (8 million liter), benzene (gasoline) 1,600cu.m (1.6 million liter), jet fuel 2,500cu.m (2.5 million liter). EPSE pays two million dollars for Horizon Terminal for the storage facility.

DHT is owned by a Dubai-based company, Horizon Terminals Limited (HTL) and a Djiboutian businessman, Abdourahman Boreh. HTL was incorporated in 2003 as a limited liability company in Bahamas by Emirates National Oil Co. (ENOC), a company owned by the government of Dubai. Wholly owned by ENOC, HTL’s authorized share capital is 200 million USD.

Sources told The Reporter that DHT was unable to expand the oil terminal due to a feud between Bore and the government of Djibouti. Sources said the Ethiopian government should reach an agreement with the government of Djibouti to secure land to jointly develop the planned oil terminal.

EPSE is in the process to build a new oil tank farm in Dukem town, Oromia Regional State, at a cost of USD 150 million
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Old July 15th, 2018, 11:33 AM   #82
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DP World hits back as China makes move to turn Djibouti into "the Dubai of Africa"

DP World has reiterated that its concession agreement for the Doraleh Container Terminal (DTC) in Djibouti remains in force, even as China moves in on the strategically-located microstate.

DP World warned in a statement that the government’s illegal seizure of the facility doesn’t give the right to any third party to violate the terms of the concession.

The statement was released following news reports on the opening of the first phase of the Chinese-built Djibouti International Free Trade Zone, in violation of DP World's exclusive management rights.

The Djibouti International Free Trade Zone (DIFTZ) is a planned 48 sq km project, however the first phase will be a US $370-million, 2.4 sq km pilot zone which will consist of four industrial clusters focusing on processing goods for export, financial support services, manufacturing and duty-free retailing.

“Having become a global logistics hub, today Djibouti is taking the next step to become an industrial and commercial hub. The opening of DIFTZ shows that Djibouti continues to grow its increasingly important role in world trade,” said Djibouti president Ismail Omar Guelleh, speaking at the launch of the project last week.

The zone will be managed by the Djibouti government and three Chinese companies: China Merchants Group, Dalian Port Authority and financial services provider IZP Technologies.

A DP World Spokesperson said: "This is yet another clear example by the Djiboutian Government of violating its contractual obligations and the rights of foreign investors.”

The spokesperson warned that DP World reserves the right to take all available legal actions, including claims for damages against any third parties that interfere or otherwise violate its contractual rights.

In February, the Government of Djibouti unlawfully seized control of the terminal, forced DP World employees to leave the country and purported to terminate the concession agreement.

DP World said it has commenced an arbitration against the Government of Djibouti before the London Court of International Arbitration and is awaiting the outcome of this process.
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Old July 16th, 2018, 11:08 PM   #83
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Government offers ‘more or less half a billion dollars’ to head off legal action

Djibouti would be prepared to pay DP World compensation of “more or less half a billion dollars . . . as early as next week” to settle a dispute over control of the city’s Doraleh container terminal.

In an interview with the Financial Times, Aboubaker Omar Hadi, chairman of Djibouti Ports & Free Zones authority, rejected talk of arbitration to settle a long-running dispute over the most modern port in east Africa, saying that DP World had to accept it was no longer involved in running the facility.

“For us arbitration is over,” he said. “They have to sit down with us, take their money and go.”

Last week, Djibouti opened the first phase of a $3.5bn free trade zone in which China Merchants Group and Dalian Port Authority have a stake. DP World, a Dubai-based ports and logistics company, said the new facility was in violation of its exclusive 30-year concession to run Doraleh and warned that it was considering legal action.

DP World said in a statement: “This is yet another clear example by the Djiboutian government of violating its contractual obligations and the rights of foreign investors.”

In February, Djibouti seized Doraleh after accusing DP World of deliberately under-using the port in favour of other regional terminals, including Berbera in Somaliland, which DP World also runs.

“They were trying to control more and more ports in the Red Sea,” said Mr Hadi, adding that DP World had shown no interest in using Doraleh to its full capacity. “That’s when we started saying there’s something wrong here,” he said.

Both Doraleh and Berbera are on the Red Sea, a narrow waterway separating the east coast of Africa from the Gulf and a thoroughfare for 30 per cent of world shipping cargo.

Mr Hadi said that the amount of compensation Djibouti was prepared to pay was subject to detailed calculations, but would be based on the net present value of DP World’s annual profits and dividends over the remaining 20 years of the concession.

DP World refused to comment. In the past it has rejected accusations that it purposefully starved Doraleh of traffic, saying it had consistently argued that the region needed several competing ports. Last year, DP World won an arbitration case against Djibouti, which had claimed it had paid bribes to win the original concession.

The dispute between Djibouti and DP World is part of a wider strategic manoeuvring in which several countries and companies are jostling for shipping routes.

Djibouti, wedged between Eritrea and Somalia, has marketed itself as a base for both cargo shipments and military bases, part of whose rationale is to fight piracy in the waters off Somalia. The US, China, France and Japan all have military bases in Djibouti within a few miles of each other.

Landlocked Ethiopia, the second-most populous country in Africa with 105m people, also needs access to ports. It has expressed an interest in swapping shares in its airline and telecoms companies in return for a stake in Doraleh, something Mr Hadi said Djibouti had accepted in principle.

In May, Ethiopia took a 19 per cent stake in Berbera port in which DP World holds a 51 per cent stake. The self-declared-independent government of Somaliland has the other 30 per cent.

This month, Ethiopia concluded a peace agreement with Eritrea, bringing to a close 20 years of hostility and giving it access to Assab and Masawa ports, also on the Red Sea.
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Old July 20th, 2018, 02:46 AM   #84
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The politics of ports in the Horn: War, peace and Red Sea rivalries

The following article is an interesting summary of the things going on in the Horn of Africa, outlining the intentions of the different powers to be present here (militarily and economically). Djibouti, Ethiopia and Eritrea are discussed in particular.

The politics of ports in the Horn: War, peace and Red Sea rivalries
by David Styan, Lecturer, Department of Politics, Birkbeck College, University of London (July 18, 2018)

The following are a few excerpts only, for the full article, read behind the link pprovided.
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Ethiopia’s Prime Minister Abiy Ahmed has repeatedly emphasised port developments on his whistle-stop tour of neighbouring countries, including Somalia, Sudan and Djibouti. The rapprochement between Ethiopia and Eritrea raises the possibility that the mothballed Eritrean ports of Assab and Massawa could be rehabilitated. And just 25km across the Bab al-Mandab straits, the war in Yemen has given nearby African ports new geostrategic significance; the United Arab Emirates (UAE) has been using its base in Eritrea’s port of Assab to besiege and bomb Yemen’s crucial port of Hodeida since mid-June

These developments beg three key questions. Firstly, why are countries in the Horn of Africa developing so many new ports? Secondly, who will finance these projects? And finally, how do control of ports in the Horn relate to the war in Yemen?

Why so many new ports?

The first question is the most straightforward. The Horn needs improved ports and infrastructure to handle the current pace of Ethiopia’s economic growth, on which broader regional integration and prosperity relies. This is why ports have been one of Prime Minister Abiy’s priorities on his foreign visits. [...]

Land-locked Ethiopia is clearly looking to break its heavy dependence on Djibouti, which has handled 90% of its foreign trade since the border war with Eritrea was triggered in 1998. However, it is crucial to understand that Addis is only seeking to diversify its access to the sea – and drive-down freight costs via increased competition – rather than reduce its use of Djibouti. In fact, these trade volumes will continue to grow as Ethiopian, Chinese and Djiboutian authorities have invested heavily in upgrading and enhancing infrastructure capacity along the Djibouti corridor.

This relationship is as crucial to Djibouti as it is to Ethiopia. Port transit fees are the mainstay of Djibouti’s exchequer and it has invested substantially in further developing this infrastructure.
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Who’s paying?

The second question this raises is who is paying for all this. For Ethiopia and Djibouti, the key actor is China. For others it is the UAE.

Djibouti’s major infrastructure initiatives are being financed and spearheaded by Chinese companies. [...] However, Djibouti is unique in two ways: firstly, it is a telecommunications hub where several key transcontinental submarine fibre-optic cables meet; and secondly, it has been home to China’s first permanent overseas naval base since 2017, when it opened next to the MPP, barely 12km from the US AFRICOM base at Camp Lemonnier. Chinese companies also have significant stakes in Ethiopia’s oil and gas fields in the Ogaden region. In November 2017, they agreed to construct a 650km oil pipeline to Djibouti and proposed building a LNG refinery at Damerjog.

The other key actor is the UAE. [...] [UAE's] DP World is simultaneously increasing its footprint in neighbouring ports. In May 2016, the company signed a 30-year deal worth $440 million to develop Berbera port in the self-declared state of Somaliland. [...] The company is also investing in building a highway to link the port to Ethiopia’s border. Meanwhile, the deal has allowed the UAE, which is playing an increasingly central role in the war in Yemen, to develop a naval base alongside Berbera.
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What are the UAE’s plans for Yemen and the Horn?

The fact that the UAE’s involvement in Berbera has enabled it to set up a naval base there leads us to our third question: how is competition over new container and cargo ports linked to the war in Yemen? [...]

Is the war in Yemen also the reason that UAE authorities now appear to be investing energetically in diplomatic overtures to both Ethiopia and Eritrea? In May, Prime Minister Abiy visited the UAE. In June, Crown Prince Sheikh Mohammed bin Zayed Al Nahyan of Abu Dhabi (MBZ) returned the favour. During this visit, the UAE’s de facto ruler announced a $1 billion emergency loan to ease Ethiopia’s acute forex shortage and promised further foreign direct investment. [...]

There are also recent hints from Saudi Arabia and UAE suggesting they may back Ethio-Eritrean rapprochement with substantial funds. Some analysts claim these would be used firstly to rehabilitate Eritrea’s ports of Assab and Massawa. They would then help finance infrastructure linking Assab to Addis Ababa and, far more ambitiously, Massawa to Mekelle, the capital of Ethiopia’s Tigray region.

This may be wishful thinking and/or hubris. Nevertheless, Ethiopia has ambitious, fully-costed long-term infrastructure plans, involving rail, road, air, and sea routes. Encouraging rival Arab and Chinese investors to compete for a share of the profits generated by integrating Eritrea’s ports back into Addis’s long-term infrastructure plans should be relatively straightforward. [...]

It is too early to tell, but what is clear is that the ports in the Horn of Africa are proving to be of increasing interest to rival Arab and Chinese investors and that the politics of ports have become central in shaping political alliances and enmities across the region.
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Old July 22nd, 2018, 11:39 AM   #85
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CrimsonLogic, a Singaporean digital solutions company, appointed by Djibouti Port and Free Zone Authority (DPFZA), a port of entry for over 99 percent of Ethiopia’s import, is to implement Port Community Systems (PCS), The Reporter has learnt.

PCS is an integrated electronic platform that connects multiple systems operated by a variety of organizations that make up a seaport. The company has officially launched the first phase of its project a week ago.

This integrated electronic platform is increasingly becoming common in sea and airports across the world. In a nutshell, it is a neutral and open electronic platform which automates, integrates and optimizes port and logistic processes through a single submission of data and linking of transport and logistic chains.

Hence, the project implementation is planned over three phases. The full implementation of the project is then expected to be completed by end 2019. “Phase one is expected to be rolled out within this year providing for online cargo manifest submission and marine port services for shipping agents,” Lim Chee Boon, Regional Director for Middle East and Africa, said.

The system aims to enhance the efficiency at Djibouti’s two major cargo ports – Doraleh Container Terminal and Port of Djibouti. “With the implementation of the new PCS, paper documentation such as arriving vessel regulatory and operational documentations, cargo manifest submission etc., will be done electronically,” Boon told The Reporter.

Online submissions are hoped to drastically reduce the need for paper documents; and in turn affecting the cargo clearance process of discharging the cargo from the vessel and out of the port by greatly increasing the speed and efficiency with which the cargo reaching the hands of the end user in Ethiopia.

As the main gateway to Ethiopia’s Import and Export, the immediate benefits of the new PCS will be the improved efficiencies at the Djibouti Ports and significant slash to the time it takes for cargo to reach the final user.

The existing Import-Export procedures at Djibouti Ports comprises of very complex processes involving freight forwarders, terminal operators, shippers, customers and the like.

These processes are complex and less efficient since they often use isolated and manual procedures, states a project document forwarded to The Reporter. And that is why DPFZA, in collaboration with Djibouti Customs, is going for the new PCS solution. By providing for a single technology platform for all parties involved, PCS will facilitate all cargo-related processes, inbound and outbound, in the fraction of the time it takes now.

Currently, it takes six to eight hours to complete all the documentation for clearance of a transit cargo from the Port of Djibouti, while taking two whole days to clear local cargo. Meanwhile, the new PCS platform is targeting an online clearance for all cargo in less than one hour.

This is a significant reduction in the logistic lead time with regard to cargo destined to Ethiopia, Boon argues, and that the system would be more impactful for importers in Ethiopia.

“In the medium term, PCS also plans to integrate the system with the Ethiopian Customs and Single Window systems, creating a seamless regulatory flow that matches global best practices, while enhancing the economic competitiveness of the region,” Boon told The Reporter. According to the regional director, the PCS platform will also help the services at the Port of Djibouti to comply with the international stands and solidify nation’s masterplan to become the port of transit services and a regional hub.

Up on its completion and rollout, the new platform will streamline all port services including application for permits for arrival ships to pilot, berth and moor; submission of delivery order from arriving ships and notification for terminal operators; to make payments and customs declarations; and for customs inspection of cargo and acquiring gate passes.

In its ambition to be a regional hub, the DPFZA has recently inaugurated a the first phase of its USD 3.5 billion free trade zone which includes commercial and industrial facilities with the hope of creating jobs for a number of Djiboutian. The free trade zone will accept Foreign Direct Investment (FDI) projects to Djibouti with mouth-watering incentives such as exemptions from paying income, property, dividend or value-added tax. Prime Minister Abiy Ahmed was one of the five leaders present in Djibouti to attend the launch of the free trade zone facility few weeks ago
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Old July 29th, 2018, 09:09 AM   #86
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L’autorité portuaire djiboutienne et ses actionnaires de China Merchant Group (CMG), ont inauguré, le 5 juillet, la Djibouti Free Trade Zone (DIFTZ), qui doit devenir, d’ici à 2028, la plus grande zone franche d’Afrique et nécessitera un investissement global de 3,5 milliards de dollars.

Les Républiques de Chine et de Djibouti viennent de cimenter un peu plus leur partenariat économique. Un an après l’ouverture du Doraleh Multi-Purpose Port (DMPP), l’autorité portuaire djiboutienne et ses actionnaires de China Merchant Group (CMG) – qui la détiennent à 23,5 % -, ont inauguré le 5 juillet la Djibouti Free Trade Zone (DIFTZ), située juste de l’autre côté de la baie.

Aux 580 millions de dollars (516 millions d’euros) investis en 2017 pour le DMPP, s’ajoutent donc les 370 millions nécessaires à la réalisation de la première phase de 240 hectares de ce projet pharaonique. La DIFTZ doit en effet devenir, d’ici à 2028, la plus grande zone franche d’Afrique avec une superficie de 4 800 hectares, pour un investissement global de 3,5 milliards de dollars.

21 entreprises engagées à créer 12 000 emplois

En levant le voile sur la DIFTZ, les autorités djiboutiennes confirment un peu plus leur volonté de faire du pays un hub logistique à vocation sous-régionale. Comme un symbole de cette ambition, Ismaël Omar Guelleh, le président djiboutien, avait invité ses homologues rwandais, somalien et soudanais, ainsi que le Premier ministre éthiopien, à venir avec lui couper le ruban « de ce formidable outil de développement au service de l’Afrique de l’Est ».

À Djibouti même, la DIFTZ pourrait bien lancer « la phase d’industrialisation du pays », selon un responsable de la banque centrale, en apportant de la valeur ajoutée aux marchandises qui transitent dans ses ports. 21 entreprises, aux trois quarts chinoises, se sont déjà engagées à s’installer dans les prochaines semaines. Présentes dans les secteurs de l’agro-alimentaire, des pièces automobiles, du textile ou de l’emballage, elles devraient créer 12 000 emplois – une première étape dans un projet global annoncé comme porteur de 350 000 emplois.

En échange, les investisseurs étrangers bénéficieront d’exemption d’impôts sur les revenus et les sociétés, « ainsi que de toute une série d’avantages et de services capables d’attirer les entreprises du monde entier », précise Aboubaker Omar Hadi, le président de l’Autorité djiboutienne des ports et des zones franches (DPFZA), actionnaire à hauteur de 60 % de la DIFTZ, avec CMG (30 %) et le port chinois de Dalian (10 %).

Un second terminal attendu pour 2020

Depuis 2006 et l’arrivée du premier terminal pétrolier, le pays n’a cessé de développer ses infrastructures portuaires et logistiques. Avec l’aide des Émiratis de DP World d’abord, qui construisent et opèrent à partir de 2009 le Doraleh Container terminal (DCT). Avec celle des Chinois de CMG ensuite, actionnaire de l’Autorité portuaire depuis 2013. La relation avec le groupe chinois est même devenue exclusive depuis la décision, prise unilatéralement en février par Aboubaker Omar Hadi, de résilier le contrat de concession accordé à DP World. Affranchi depuis d’une tutelle pesante, qui interdisait au pays toute construction de nouvelles installations portuaires, Djibouti a accéléré le mouvement.

Déjà en 2017, en plus du DMPP, la petite République avait réceptionné les ports décentralisés de Tadjourah et du Goubet. Et au début de l’année, la liaison ferroviaire avec Addis-Abeba a enfin démarré ses services. Près de 90 % de tous les échanges commerciaux liés au marché éthiopien passeront par cette ligne, soit plusieurs centaines de milliers de tonnes de marchandises chaque année. Et ce n’est qu’un début.

Bien décidé à saisir l’opportunité que lui offre sa situation géographique, entre les biens de consommation chinois et les matières premières africaines, Djibouti prévoit déjà la construction d’un second terminal à conteneurs, pour 660 millions de dollars. Attendu pour 2020, le Doraleh international Container terminal (DICT) pourra traiter 2,4 millions d’Equivalents vingt-pieds (EVP) chaque année.

Damerjog, un chantier à suivre

Après avoir développé le pourtour de la baie située au nord de Djibouti-ville, les autorités du pays, toujours avec l’appui financier de CMG et de ses partenaires chinois, regardent maintenant le Sud, en direction de la Somalie. Le site de Damerjog doit abriter à moyen termes un ensemble de ports, pétrolier et gazier, minéralier, ainsi qu’un quai polyvalent et un terminal à bétails, le tout pour un investissement dépassant les 4 milliards de dollars. La DPFZA entend même moderniser le vieux port pour y construire une marina qui accueillera les bateaux de croisière.

Même si l’endettement du pays a sérieusement augmenté ces dernières années, pour atteindre 80 % du PIB en 2017, les bailleurs restent confiants. « Djibouti dispose des infrastructures dont le pays a besoin pour desservir son hinterland », estime la représentante locale du Programme des Nations Unies pour le développement (Pnud).

La queue des navires dans la baie de Tadjourah et les terminaux à conteneurs engorgés sur Doraleh, montrent l’intérêt grandissant pour Djibouti et ses ports. « Les quais ne désemplissent pas », confirme Abdillahi Adaweh Sigad, le patron du DCT. Dernière arrivée en date, la compagnie maritime singapourienne PIL a démarré ses rotations en mars depuis l’Asie. À raison de deux escales hebdomadaires, elle prévoit d’apporter un trafic annuel de 300 000 EVP. Beaucoup d’autres opérateurs maritimes et portuaires cherchent à s’implanter dans le port, voire même à se faire une place dans son conseil d’administration, comme la CMA-CGM entrée en avril à hauteur de 15 % dans le capital du futur DICT.
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Old August 1st, 2018, 12:56 PM   #87
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DP World, Djibouti Fail to See Eye to Eye

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The government of Djibouti offers DP World close to 500m dollars to buy out its share
The government of Djibouti and DP World, the UAE port management company, are embroiled in a tense dispute, unable to see eye to eye on the most fundamentals issues in the disputes over the concession to run the Doraleh Container Terminal for 50 years.
The officials of Djibouti Ports & Freezone Authority (DPFZA) claim they have offered DP World close to half a billion dollars to buy out the 33pc stake in the terminal owend by the company along with compensation. Djibouti's government claim that 334 million dollars of it was made to buyout DP World's stake, while the balance is allotted as compensation.
"We're going to buy their shares," Aboubaker O. Hadi, chairman of the Authority, told Fortune.
However, the management of DP World insists that the company has received no offer from the government of Djibouti.


"We haven't received any official offer from the Djibouti government," the spokesperson of DP World responded to Fortunevia email.
A month ahead of the dispute last February, officials of the two parties met in Jebel Ali, where DP World's headquarters is located. The meeting was held between officials of Djibouti and Sultan Ahmed bin Sulayem, the Group Chairman and CEO of DP World.
Though DP World officials insist that the meeting was a regular one, the Djibouti government claim that it was during this meeting where Sultan Ahmed bin Sulayem made the initial offer to sell the company's share to Djibouti. If agreed, DP World could be paid after calculating the profit and the dividend it could have been paid for the coming 20 years, according to Djibouti officials.


But the management of DP World now seems to close the door on negotiation, stating that it will wait for the result of the ongoing arbitration between the two parties in London, United Kingdom. DP World claims that its concession agreement is still valid, despite Djibouti's parliament voting to make it null and void immediately after the two sides met in Dubai.


Djibouti believes the concession agreement violates its sovereignty for it has a clause stopping it from entering into a concession agreement with any other party in any other part of the country during the 50-year period. The deal was signed by Abdourahman Boreh, chairman of DPFZA at the time, and retained as a consultant by DP World at the same time.
While the Doraleh Container Terminal became operational in 2009, the terminal's concession was awarded to DP World in 2006. But the deal was terminated by the Djibouti government alleging misconduct by DP World over a concession to operate the terminal, which can hold 1.6 million twenty-foot-equivalent units (TFU). The facility also operates eight super-post-Panamax container cranes.
Djibouti then hired the Singapore-based Pacific International Lines (PIL), with the agreement of raising the handling performance of the terminal to an additional 300,000 TFU. Just three months after the new deal with PIL, Djibouti"s Authority reported the port's capacity was boosted from 25 containers per crane per hour to 34.


The larger value of Ethiopia's import-export cargo is ferried through Djibouti ports. Currently, the imported freight of Ethiopia hit 13.5 million tonnes, while the export reaches more than 1.8 million tonnes a year.
The unresolved dispute with DP World led its lawyers to take the case to an arbitration court in London, where the Djibouti government launched a suit against DP World four years ago over allegations that the company had made improper payments to Boreh in exchange for favourable concession terms. Djibouti lost the suit despite proving that Boreh indeed received fee from DP World while serving as chairman of DPFZA.
"We'll wait for the outcome of the arbitration," a spokesperson for DP World told Fortune. "We don't consider any alternative settlement options."
Hadi sees no arbitration process
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Old August 1st, 2018, 06:36 PM   #88
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Djibouti has moved 44 places in the World Bank Logistics Performance Index (LPI) in just two years after investing heavily in its infrastructure.

The East African state has jumped from 154th in 2014 to 90th this year, and is listed as one of the top 10 most improved economies in the World Bank’s ‘Doing Business’ report.

Djibouti has improved in five of the six World Bank ranking criteria, with its greatest success in the infrastructure ranking, where it rose 50 places to 60th.

It comes less than a year after the country opened three of the most modern ports in Africa in US$ 15 billion expansion, including the Doraleh Multipurpose Port, which handled over 24,000 TEU in its first six months of operation.

The Doraleh Container Terminal is one of the most efficient in Africa with 34 moves per hour per crane, and it has increased 32% in the last five months.

The terminal is the centre of the Djibouti International Free Trade Zone (DIFTZ), the biggest free trade zone in Africa that opened in July 2018.
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Old August 2nd, 2018, 06:42 PM   #89
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London court rules DP World Djibouti contract "valid and binding" - Dubai govt

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DUBAI, Aug 2 (Reuters) - Dubai’s government said on Thursday the London Court of International Arbitration (LCIA) has ruled DP World’s port container terminal contract in Djibouti was valid and binding.
The government of Djibouti seized the Doraleh Container Terminal from DP World in February over a dispute dating back to at least 2012. Dubai government-controlled DP World has called the seizure illegal.
“The LCIA Tribunal has ruled that Doraleh Container Terminal’s Concession Agreement ‘remains valid and binding ...’” Dubai’s government media office said in a statement, which did not state when the ruling was made. “DP World will now reflect on the ruling and review its options.”

A DP World spokesman referred to the Dubai government statement when contacted by Reuters for comment.
Djibouti officials could not be immediately reached for a comment.
Djibouti Ports and Free Zone Authority (DPFZA) said in March it was willing to buy out DP World’s 33 percent stake in the container terminal to end the row with one of the world’s largest port operators. DP World denied that such an offer had been made.
In 2017, the LCIA cleared DP World of allegations of misconduct associated with the terminal concession awarded in 2000. (Reporting by Alexander Cornwell, editing by David Evans)
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Old August 7th, 2018, 01:15 PM   #91
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La dernière actualité de la région, le développement de nos infrastructures portuaires ces dernières années, la concurrence qui s’annonce dans les domaines de la logistique et du transbordement, le président de l’APZFD nous a accordé cette interview au cours de laquelle nous avons fait le tour de toutes les questions qui nourrissent les débats ces derniers temps….


Une question d’ordre général sur l’actualité pour commencer même si la diplomatie et le politique ne sont pas votre domaine. L’agenda politique et diplomatique semble s’accélérer dans la région. L’Ethiopie et l’Erythrée ont entamé une réconciliation spectaculaire. Le Sud Soudan espère sortir du chaos avec la signature d’accord qu’on espère définitif. On voit donc qu’il y a une dynamique de paix qui embrasse la région. Quel est votre regard sur cette actualité ?



Merci c’est vrai que nous assistons ces dernières semaines à un chamboulement des alliances dans les pays de la région, des rapprochements politiques pour résoudre certains problèmes, certain conflits. Je pense personnellement que c’est une très bonne chose pour le développement et pour la prospérité de notre région. C’est quelque chose que notre région avait grandement besoin. Heureusement, Djibouti a toujours été un pôle de stabilité et nous prions pour que ça continue. Et nous espérons que les échanges commerciaux des pays de la région vont augmenter davantage.


L’autorité des ports et des zones franches, que vous présidez, a été créée en 2002. Comment se porte votre structure ? Mais d’abord une question personnelle. Vous êtes un homme très occupé et selon certains il est difficile de vous rencontrer. Comment vivez-vous votre fonction ?



C’est une charge importante que le président m’a confiée et je fais de mon mieux pour m’acquitter de ma responsabilité. Pour ce qui est de la zone franche, elle se porte très bien. Depuis 2002 des progrès ont été enregistrés. Djibouti a beaucoup investi dans le domaine des infrastructures maritime et des zones franches. On a beaucoup du succès par rapport aux pays de la région.

Djibouti a toujours vécu avec un seul port, en l’occurrence l’ancien port. Aujourd’hui vous êtes à la tête de combien de ports ?

Depuis maintenant vingt ans, Djibouti a beaucoup investi dans les domaines des infrastructures et du transport. On est passé d’un port, qui est le port situé au Marabout à six ports aujourd’hui et une zone franche que le président de la République a inauguré le 5 juillet dernier, avec une superficie de 48 km2. On a aussi d’autres projets pour agrandir ces ports et investir dans d’autres régions. Le prochain aura lieu dans quelque semaine, nous allons procéder au lancement des travaux de construction de la deuxième zone franche qui va se situer à Damerjog. Une zone franche de 30 km2, avec un port assez important qui sera aussi importante que Doraleh.

Les Djiboutiens ont l’habitude de considérer les activités portuaires comme le poumon de l’économie nationale. Est ce que vous partagez cette perception ?

Oui c’est vrai, les indicateurs macro économique le démontrent, c’est d’abord le port de Djibouti et les zones franches, nous sommes les premiers employeurs de la République de Djibouti. Dans le secteur tertiaire nous représentons deux tiers. Le commerce, la finance et le transport représentent l’autre tiers.

Les ports sont aujourd’hui adossées à une zone franche. On va revenir à la nouvelle zone franche mais le chômage reste important. Est ce que dans ce sens l’autorité des ports crée assez d’emplois surtout pour tous ces diplômés qui sortent des universités ?

C’est la première zone franche de cette nature, une zone franche industrielle qui a été créée. Et que le président a inauguré le 5 juillet dernier. Donc c’est là qu’on attend les premières retombées en matière de création d’emplois. Et d’absorption des jeunes, surtout des jeunes diplômés, c’est là un défi à relever. Les premières 21 compagnies se sont déjà installées la veille du jour de l’inauguration de la zone franche. Nous espérons que cette zone, comme cela a été indiqué dans les brochures que nous avons distribuées lors de l’inauguration, va créer jusqu’à 12.000 emplois sur plusieurs années, jusqu’ à ce qu’elle soit complètement remplie. C’est une zone franche de 240 hectares. Maintenant ce sont les premières sociétés qui se sont installée. C’est une zone franche industrielle. Ce seront des emplois de techniciens et d’ingénieurs qui seront crées.

Justement est ce que vous êtes en discussions avec l’université de Djibouti et les autres institutions de formation étant donné qu’il y a toujours eu un problème d’adéquation formation- emploi ?

Absolument nous travaillons avec le ministère de l’enseignement supérieur et le ministère de l’éducation nationale et de la formation professionnelle, pour d’abord indiquer quels seront les métiers du futur dans lequel les djiboutiens pourraient être formés.

Ces dernières années vous avez régionalisé les ports notamment au Lac Assal et Tadjourah. Quand est ce que ce dernier port va entrer concrètement en service et une idée sur la création d’emplois ?

Le port de Tadjourah est déjà mis en service. Les premières cargaisons ont déjà été déchargées. On a commencé avec du gaz liquéfié qui est en transit pour l’Ethiopie. Prochainement on attend les cargaisons des blés et d’aides alimentaires en transbordement dans les pays de la région. Pour le port de Tadjourah, on a déjà fait les estimations. Progressivement on va augmenter le nombre d’employés. Actuellement on est à 120 employés dans le port de Tadjourah dans différents domaines. Nous espérons que le nombre d’emplois crées à Tadjourah va passer rapidement à 600.

La Banque mondiale vient de publier son rapport 2018 sur l’Indice de la performance logistique et classe Djibouti au 90e rang mondial au lieu de 134 auparavant . Est-ce encourageant particulièrement pour les investisseurs ?

C’est très encourageant pour les investisseurs, surtout ce qu’il faut comprendre c’est que le transport est une chaîne. La Banque mondiale et les institutions qui font ces genres d’évaluation évaluent les performances de la chaîne complète. Si un maillon de la chaîne est défaillant cela affecte toute la chaîne. Ça ne sert à rien d’avoir une chaîne solide si un maillon est défaillant. Donc c’est sur 5 critères que la Banque mondiale fait son rapport pour tous les pays du monde, pour tous les ports du monde.

Il s’agit de la douane, de l’infrastructure portière, l‘infrastructure du transport et les livraisons des marchandises. Il faut comprendre donc :c’est surtout sur ces cinq critères que l’évaluation a été faite. Nous devons plus synchroniser nos efforts pour qu’on puisse remonter d’avantage dans le classement. Djibouti doit faire mieux dans les domaines de transports et de la logistique, nous espérons que la prochaine évaluation verra une nette progression aussi. Parce que la banque mondiale fait cette évaluation tous les deux ans, la dernière c’était en 2016 donc de 2016 à 2018 nous sommes passés de la 134ème place à la 90ème place. Nous espérons en 2020 se retrouver parmi le 50 premiers.

Est-ce qu’on peut dire que notre pays a la main d’œuvre qualifiée pour relever tous ces défis avec tous ces ports qui se développent. ? Est ce que les gens compétents sont là ou est ce qu’on a besoin dans le futur de former plus de main d’œuvre qualifiée ?

Dans le domaine portuaire, nous avons toujours formé les ressources humaines. On envoie des étudiants à l’étranger pour se former dans des universités maritimes et dans des académies maritimes. D’autres formations se déroulent sur place. Dans le domaine portuaire, nous avons les gens qu’il faut. Nous avons commencé aussi la formation pour les gens qui vont travailler dans les futures usines qui vont s’implanter dans la zone franche de Djibouti.

Nous aurons notre propre structure avec laquelle nous travaillons le Ministère de l’éducation nationale et de la formation professionnelle pour le métier de col bleu et pour le Ministère de l’enseignement supérieur nous travaillons sur la formation des cadres, les ingénieurs. C’est très essentiel pour la réussite de nos infrastructures portuaires, l’exploitation des ports et puis la gestion des zones franches.

Djibouti a inauguré le 5 juillet dernier le premier tronçon de ce qui va devenir la plus grande zone de libre échange en Afrique. Beaucoup pensent que c’est une propriété chinoise, quel est exactement son statut ?

Cette zone franche est détenu à 60% des actions par l’autorité des ports et de la zone franche qui a crée une holding qui s’appel Great Horn investment holding. 30% est détenu par China Merchant et 10% est détenu par le port de Dalian. Donc la république de Djibouti , à qui appartient l’ Autorité portuaire des zones franches détient 60%. De ce fait, nous sommes l’actionnaire majoritaire à presque deux tiers. Il ne s’agit pas donc d’une zone franche chinoise mais d’une zone franche djiboutienne.


Une zone franche qui se veut régionale et internationale à la fois on parle aussi de l’implication du Rwanda…

Absolument le Rwanda est aussi actionnaire, une petite action qu’il souhaite augmenter parce que l’autorité des ports et des zones franches est actionnaire dans deux zones franches au Rwanda, donc on a échangé des actions. Vous avez parfaitement raison de soulever c’est le 4e partenaire investisseurs de la zone franche de Khor Ambado.

Est-ce que vous avez déjà enregistré des entreprises dans la nouvelle zone franche ? Quelle sera la tendance d’ici les dix années à venir ?


C’est difficile à dire parce que la zone s’étale sur une superficie de 4800 hectares. Cela dépendra de la taille des sociétés. Ce qu’on peut déjà dire, ce que nous pouvons accueillir plus de 150 sociétés dans la phase pilote de 200 hectares. Déjà il y a 21 sociétés qui ont pris de l’espace pour leurs activités commerciales. Nous sommes en discussion avec 34 autres sociétés. Nous espérons finaliser leur implantation dans les semaines à venir.

Est-ce que cette zone franche va nous placer davantage au cœur de l’intégration régionale?

Absolument. Ce qu’il faut comprendre dans ce concept de la zone franche de Djibouti, c’est de manufacturer et de fabriquer ce que les pays de la région importent de l’extérieur c’est-à-dire de l’Inde, de la Chine et de la Turquie. Celle-ci aura une vocation internationale. C’est pour cela qu’on a misé sur les pays limitrophes pour les encourager à venir s’installer ici et puis importer à partir de la zone franche de Djibouti.

La semaine dernière le ministre de l’économie, qui était l’invité de cette émission, disait qu’avec la nouvelle reconfiguration dans la région Djibouti ne fera pas l’économie de quelques compétitions. Comment est ce que vous, vous voyez ces compétitions ?

C’est mon avis aussi. Les ports et les zones franches de Djibouti n’ont pas été conçus seulement pour servir les pays de la région. Nous avons toujours dit que les capacités qu’on a créées sont beaucoup plus importantes, et que surtout ce que nous visons dans notre trafic portuaire, c’est le transbordement qui, aujourd’hui, représente 50% de nos activités.

Donc les inquiétudes exprimées ici et là n’ont pas raison d’être…

Absolument. Moi j’ai l’habitude de dire que nous ne jouons pas dans la même ligue lorsqu’il s’agit de certains ports de la région.

La nouvelle zone franche va continuer son expansion pour atteindre 48 km2. Cela étant, quels sont les projets à venir qui vont encore une fois marquer Djibouti dans son positionnement dans la région?

Oui cette zone franche de 48km2 aura trois fonctions. Elle demeure la première zone franche industrielle de notre pays, elle sera une zone franche logistique et commerciale et puis on espère qu’elle va être aussi une zone franche financière pour la région. Elle est appelée à s’étendre dans la région mais à petit pas. On a commencé avec le Rwanda, on est en discussion avec le Togo qui nous a approché pour bénéficier de notre savoir-faire. Il s’agit donc d’un retour sur investissement. Nous faisons très attention.

Maintenant la question est de savoir quel sera la prochaine étape pour justement conforter la place de Djibouti dans la région ou un peu plus encore sur le continent ?

Notre stratégie est d’investir selon les besoins. Maintenant sur les 48 km2, nous avons construit 2,4 km2 qui fait partie de la première phase qui est de 6 km2 (600 hectares). La première phase pilote de 2,4 kilomètres a été inaugurée par le Président de la République de Djibouti.

Nous allons continuer progressivement étape par étape à étendre cette zone. En même temps nous sommes en train de développer la zone franche de Damerjog qui sera une zone franche d’industrie lourde. Dans celle-ci il y aura un chantier naval, une raffinerie de pétrole, une cimenterie, des acieries. L’objectif principal c’est de faire le maximum dans notre pays et puis regarder ce qu’on ne peut pas faire à Djibouti et faire ailleurs .
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Old August 27th, 2018, 11:59 AM   #92
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ADDIS ABABA- Representative of the Djibouti Ports and Free Zones Authority Hassan Abdillahi Waberi said that Djibouti has sufficient capacity to handle Ethiopia's import-export shipment and provide seamless service for the existing traffic.

In an exclusive interview with The Ethiopian Herald, the representative stated that Djibouti ports have the accumulated capacity of transporting 50 million tons of cargo per year while Ethiopia's current import-export traffic is 18.5 million tons. Along with facilitating Ethiopia's international trade, Djibouti provides transshipment services for many African countries.

Waberi noted that the present congestion in Djibouti ports is not emanated from the terminals incapacity of handling Ethiopian goods; it is caused by the deployment of Ethiopia's bulk shipments in some peak seasons.

The representative said that the congestion is created due to peak shipping seasons among the business community. The arrival of larger quantities of cargo in Djibouti ports within short period and unloading cargo ships quickly and efficiently has become more of a challenge for the longshoremen working on the docks.

"Even the Port of Rotterdam, the largest port in Europe, could be congested if huge cargos flooded the terminals and the deployments of Ethiopia's bulk imports within short time create massive pressures on our port facilities, logistics and employees."

Waberi said that Djibouti has been hugely investing to expand and modernize its port facilities and infrastructures in the view to serve the growing Ethiopia's economy. The country has renovated the old port and built six specialized, state-of-the-art container, petroleum, cargo and bulk ports.

Ethiopia is a strategic partner of Djibouti and the largest portion of Djibouti's service revenue emanates from the country, he noted, adding that Ethiopia's persistent economic growth along with this has made Djibouti heavily invests in port construction and other infrastructural developments to meet its client's increasing demand for port services.

To satisfy Ethiopia's ever-expanding demand for port following the rise in its import-export trade, Djibouti is modernizing the old port and constructed alternative ports at Tadjourah, Gubet, Damerjock, Doraleh, Lake Assal and established a hydrocarbon terminal, Horizon Port, the representative explained.

He pointed out that currently Djibouti's government is the sole operator of all ports and there is no outsourcing of port service for foreign companies which in turn guaranteeing unreasonable price increases could not occur. Djibouti has also a natural port and big ships could come to the port and unload their cargos easily.

Waberi said that Ethiopian cargo represents the majority of products going through Doraleh Multi-Purpose Port (DMP) and Doraleh Container Terminal (DCT), Djibouti's brand- new terminals and amongst the modern in Africa. Today the main customer for these facilities is the Ethiopian market.

According to him, the aforementioned ports are the latest in a series of mega projects in Djibouti which includes new ports, a Liquefied Natural Gas Facility and oil terminal which all are followed the completion of the Addis Ababa-Djibouti Railway.

The inauguration of the first phase of the Djibouti International Free Trade Zone (DIFTZ), the first of its kind in Africa, will also avail the opportunity to Djibouti to provide world-class logistics service for Ethiopia and other African countries, the representative noted.

In the cooperation between Ethiopia and Djibouti, the matter of port stands at the forefront since Ethiopia is undertaking almost all of its import-export activities via the latter's ports.
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Old August 27th, 2018, 07:52 PM   #93
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A delegation comprised of top leaders in the Ethiopian logistics sector visited Djibouti for two days, between August 15 and 17, where they observed operations and discussed improvements they wanted their Djiboutian counterparts to focus on.

Several areas of concern were addressed during the meeting which took place in the conference room of the Doraleh Multipurpose Port (DMP).
“There are some challenges with the port service that have to be improved,” Eshetie Assfaw, State Minister of Transport said. “We have also agreed on developing logistical standards so that they resemble other countries. In addition, new technology is expected to be applied to port services as per our agreement with the leaders of the logistics sector in Djibouti to modernize the service.”

They also reviewed the additional capabilities deployed this year by DMP to best meet the needs of neighboring countries, primarily Ethiopia, according the information Capital obtained from the Djibouti side. This included improving services to accelerate the operation and connecting the railway line with the port at Doraleh and using modern technologies in the operation.
The Ethiopian delegation also talked about linking the railway line from DMP to the main line. Eshetie stated that the two sides agreed to conclude the line, which is about one kilometer, until September. When the line is connected it will be easy for Ethiopia to take the bulk and other cargos from the port directly to Ethiopia within a short period as opposed to stranding cargos at the port for several days, which would likely mean additional demurrage costs, according to Eshetie.

“In DMP, we will have five loading lines for the trains,” Mohamed Aref Mohamed, Head of the Marketing Department of DPFZA, told Capital.
He added that the railway feasibility study mentioned 20 freight trains per day, now there are two trains per day but the market needs at least 10 trains. “From both sides, all the necessary improvements are being undertaken,” he said.

The delegation met with the Ethiopian transport associations’ representative in Djibouti, who was experiencing some problems which they agreed to solve.

The Ethiopian delegation members also visited the Doraleh Container Terminal (DCT).

On February 22, 2018 Djibouti took the management from DP World they also took over the Horizon Djibouti Oil Terminal. According to statements from the Djibouti side, during the visit to DCT, which is already in the final stages of connecting with the railway line, the management said productivity had increased since February 22.

“They learned that three loading lines connecting DCT to the road are in the process of being finalized. The capacity of these future loading lines will be 106 containers per train,” a spokesperson told Capital.

According to sources in Djibouti, the delegation wanted the oil terminal, which is also located at Doraleh, connected to the railway.

The two parties also had discussions on various lines of partnership between the management of DMP and the entities in charge of logistics in Ethiopia.

Djibouti will continue to be a major hub for Ethiopia as Ethiopia expands its port access in the region. The nation is the major port outlet for Ethiopia with up to a 95 percent share of cargo services. The two countries have undertaken several projects including an electrified railway. Ethiopia has 75 shares, while Djibouti owns the balance. According to the project design the line has to be connected at major ports in Djibouti especially the Doraleh Multipurpose Port, the biggest port facility in the region.

The recently appointed State Minister said that they have talked about Ethiopia’s latest move to expand port services across the region. “Djibouti says they are not disappointed or worried about our move, and they want to do business as a business model,” he told Capital.

He went on to say that even though Ethiopia is aggressively looking for more ports it is obvious that Djibouti will continue as the major hub for Ethiopia since the country is equipped with modern port infrastructure and a railway line. “We have expressed our stand and they are also delighted,” he added.
“The government’s intention with Eritrea is not to accesses ports. It is beyond that. It has to do with the historical relation between the two brotherly nations,” Eshetie emphasized.

A week ago Mohamed Aref Mohamed, Head of the Marketing Department of DPFZA, told Capital that Djibouti welcomes free and fair competition. He said that for the last three decades, Djibouti has been a trans- shipment hub for the Red Sea and East African ports, and continues to be more than ever. “We are linking countries to one of the busiest maritime trade routes in the world,” he said.

“Indeed, our infrastructure capacity is far larger than Djibouti and Ethiopia’s external trade. Our relationship with Ethiopia is of vital importance but Djibouti’s facilities are strategic for the whole region. Our ports are designed to be a transshipment hub and have sufficient capacity volume to service Mombasa, Dar es Salaam, Durban, Sudan, Aden, Berbera and Massawa, which have served for many decades (is not a new business),” he added.

The delegation was led by Eshetie Assfaw, State Minister of Transport (MoT). Hiwot Mosisa, State Minister of MoT, Araya Girmay, State Minister of MoT, Abdissa Yadeta, Director General of the Federal Transport Authority, Mekonnen Abera Director General of the Ethiopian Maritime Affairs Authority, Roba Megerssa, CEO of Ethiopian Shipping and Logistics Services Enterprise, and Tilahun Sarka (Eng), CEO of Ethiopia-Djibouti Railway Share Company took part in the talks.

They met with Aboubaker Omar Hadi, Chairman of Djibouti Ports and Free Zones Authority, Saad Omar Guelleh, Managing Director of Djibouti Port Corporation (PDSA), Wahib Daher Aden, Executive Director of DMP, and several other managers. (Capital Ethiopia)
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Old September 20th, 2018, 03:31 AM   #94
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Old December 10th, 2018, 08:36 AM   #95
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Djibouti will resume providing port services to South Sudan following the restoration of peace in the latter, official said.

The chief executive of Djibouti's Duraleh Multipurpose Port (DMP), Mr Wahib Daher Aden, said they would also provide services to Burundi and Rwanda.

“Just before the war in South Sudan broke, we were serving the country. Unfortunately, the war broke and we were forced to stop," Mr Aden said.

"Now, as peace is being restored in the country, we are going to restart that service for South Sudan,” added Mr Aden who briefed visiting journalists on Tuesday

Railway connection

DMP, which began operations in June 2017, has expanded greatly in the recent past.

“For a small country like Djibouti, building five new ports and a railway connection with Ethiopia in 10 years is a massive infrastructure investment. DMP is really a game changer in the whole industry and the region," Mr Aden said.

"It is the most efficient port that also serves Ethiopia, and aims at serving Burundi and Rwanda. We compare ourselves with most efficient ports in Singapore and China.

“Because Ethiopia is a big country, we want to be chosen by our service. We want to be chosen in eastern Africa because of our modern, customer-oriented and efficient services, which save costs."

Mr Aden disclosed DMP was, for the first time, expected to handle the biggest ship with 80,000 tons of grain by the end of December for the Ethiopian government.

Fully operational

Further, he noted noted, the newly constructed electric railway line connecting Djibouti with Ethiopia would be linked to DMP in two months.

Once fully operational, goods from DMP would reach Ethiopia's Modjo Dry Port, about 76km east of Addis Ababa, within 12 hours.

With huge loans, mainly from China, Djibouti has been investing heavily in new port developments over the past few years.

Currently, the country has five specialised ports and additional two others under construction.

Commenting on the impact of being among the highest indebted African countries, Mr Aden said: “No country will give you a loan unless what you do is financially feasible.”
I don't know how they plan to reach the Great Lakes region
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Old December 23rd, 2018, 09:49 AM   #96
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Monjasa expects a 200,000mts volume increase from its new supply location Djibouti. The objective is to challenge status quo and provide a valid alternative to the traditional Suez and Jeddah bunker markets.

Strategically located at the mouth of the Red Sea, Djibouti is fast developing into an attractive bunker destination on the busy Suez waterway. Improved maritime infrastructure and heavy investments in port developments are expected to further advance trade going in and out of Northeast Africa in the future.

It has always been part of Monjasa’s business model to build niche markets and offer ship owners and operators valid alternatives to taking bunkers in the world’s traditional hubs.

“As the security situation in the Gulf of Aden is improving, new opportunities arise for both service companies and global shippers operating in the area. Having joined forces with a local partner, we are determined to demonstrate Djibouti as a competitive and high-quality refuelling option on this important sea route,”says Group COO, Svend Mølholt.

As part of the setup, Monjasa imports the products with Handysize tankers, which also serves as floating storage for the operation. Currently the 40,000 DWT tanker ‘Karen Maersk’.

The bunker operation in Djibouti is fully operational and offers all fuel grades according to ISO 8217:2010 specifications. In total, Monjasa foresees a 200,000mts volume increase during 2019.
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Old January 23rd, 2019, 03:26 PM   #97
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The DPFZA team are in Europe this week, consolidating regional partnerships and securing new ones.

Yesterday, we met with Dutch partners Damen, at Rotterdam Port. After signing a Memorandum of Understanding with the ship-building firm in December, we today discussed the terms of the MoU and how we can concretely work together.

At the heart of the partnership is the fostering and development of Djibouti’s human capital. Over the coming months, 20 Djiboutians will be trained in ship-repair in Holland. After this training, they will then be able to work in a ship repair facilities which will open in Djibouti in a year and a half.

We also met a consortium of Dutch businesses to discuss the prospect of a cold chain from Ethiopia to Rotterdam, passing through Djibouti. Ethiopia is one of the world’s biggest flower and fruit exporters and the Dutch businesses community is working to ensure that the supply chain of these goods remains cold from start to finish.

These partnerships and discussions are yet another affirmation of Djibouti’s role as an international trade and logistics hub, open to investors from across the world.


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Old April 17th, 2019, 12:27 PM   #98
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A London court has delivered the latest verdict in the battle to manage one of Africa’s most strategic ports.

The Court of International Arbitration, which helps to resolve international commercial disputes, has ruled that Djibouti breached the rights of Dubai port operator DP World to manage the Doraleh Container Terminal when it ended a 30-year concession agreement, signed in 2006, with the port operator last February, and took control of the terminal’s operations. The company called the move by the tiny coastal nation an illegal seizure, kick-starting a trans-continental legal battle. The tribunal ordered Djibouti to pay $385 million plus interest for breaking the deal, $148 million in unpaid royalties, and legal costs.

The fight over who manages the harbor comes as Djibouti seeks to become one of the biggest trading ports in Africa. With a population of less than a million people, the port is an important gateway to the Gulf of Aden, and a crucial route for global shipping operations.

The judgment follows years of legal tussling between Djibouti and DP World over the terms of its agreement, including an accusation by Djibouti in 2012 that DP World had offered bribes to secure the deal, which the port operator denied. The case reinforces previous tribunal court rulings that the agreement with DP world was still binding. Djibouti hasn’t recognized any of these rulings, although officials have in the past expressed a willingness to renegotiate the terms of the original contract.

Complicating matters, Djibouti has also been working with China Merchants Port Holdings, a Hong Kong-based subsidiary of state-owned conglomerate China Merchants Group (CMP), to develop alternative container facilities. The country sold 23.5% of its 66.66% stake in Doraleh to CMP in 2013, a move that vexed DP World, which owned the remaining 33.34% of the terminal. Following the cancellation of the deal with DP World last year, the government nationalized the shares held by Port of Djibouti in Doraleh last September and transferred all assets to a new company to manage the terminal.

DP World filed a lawsuit last November against China Merchants in Hong Kong for bypassing its concession agreement with Djibouti and building a free zone on the disputed terminal.

The fight over the Doraleh terminal highlights the challenges posed by China’s deepening reach in Africa. Djibouti is home to several military bases, key among them the United States’ lone permanent outpost in Africa, and China’s first overseas military base, opened in 2017.
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Old January 16th, 2020, 04:11 PM   #99
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Djibouti has entered a new stage in its development as three agreements with international partners were signed to finance a new 6-million ton oil project in Damerjog Industrial Park.

The floating refinery project will position the country as a leader in the refined oil industry in East Africa, as well as allowing Djibouti to transition to lower-sulphur marine fuels, in line with the International Maritime Organisation’s most recent environment regulations.

The project also signals the first major step in the development of Djibouti Damerjog Industrial Park, which is set to be the country’s first heavy industrial and petrochemical base. The industrial complex will be connected to Djibouti's ports and international free trade zone via a “Road-Port-Air-Railway” infrastructure network, which will be the only one of its kind in East Africa.

Businesses and investors in the park will not only be able to take advantage of these advanced logistics and transport services, they will also benefit from a range of preferential policies.

We are excited to put these agreements into action and looking forward to further infrastructural developments that are advancing Djibouti's vision to become a global trade and logistics hub.
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Old January 21st, 2020, 08:36 AM   #100
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DP World has won a further legal hearing against the Government of Djibouti over the Doraleh Container Terminal lease it terminated in 2018. A Tribunal of the London Court of International Arbitration ordered Djibouti to restore the rights and benefits under the 2006 Concession Agreement to DP World and Doraleh Container Terminal SA within two months, or pay damages.

An independent expert has estimated the losses to DP World at more than $1 billion. The ruling by the Tribunal said Djibouti had acted illegally when it forcibly removed DP World from management of the terminal in February 2018, claimed it had terminated the Concession Agreement and transferred the Terminal assets to a state-owned entity.

The latest tribunal ruling is the sixth substantive ruling in DP World’s favor in the London Court of International Arbitration and the High Court of England and Wales. To date, all have been ignored by Djibouti despite the original contract for the concession being written under and governed by English law.

The Doraleh Container Terminal is the largest employer and biggest source of revenue in the country and has operated at a profit every year since it opened. The Doraleh Container Terminal was found by an English court to have been a “great success” for Djibouti under DP World’s management.

DP World now awaits proposals from Djibouti about how it intends to comply with the latest legal ruling. If Djibouti does not comply with the ruling, the Tribunal has stated it will proceed to issue an award of damages.

The Republic of Djibouti has issued a statement saying the ruling comes as no surprise. “It is merely the outcome of the iniquitous provisions of the concession, which could force a sovereign State to set aside and disregard its own national law, in order to revive a concession that was terminated on the grounds of the higher interest of the Djiboutian nation, and for the exclusive benefit of a foreign-owned company.

“Under no circumstances can the Republic of Djibouti accept such a ruling, which was handed down in an arbitration in which it did not take part and which flouts the rules of international law. These rules allow a sovereign State to terminate any contract for reasons of higher national interest subject to the payment of fair compensation.”

The Republic of Djibouti has reasserted its position, saying:

• The termination of the Concession Agreement for the Doraleh Container Terminal, awarded in 2006 to DCT (Doraleh Container Terminal), a joint venture between the Djibouti International Port Authority and DP World, was decided in the context of a legal framework that had previously been adopted by the Djiboutian parliament on November 8, 2017.

• DP World's operation of the terminal had proved to be contrary to the fundamental interests of the nation. Its continuation would have seriously harmed Djibouti's economic and social priorities by placing unacceptable restrictions on its development policy and giving a foreign-owned company total control over one of its most strategic infrastructure.

• The Doraleh container terminal had not been operated to its full potential by DCT in order, obviously, to protect DP World's operations in Dubai. Since the concession ended, the port's activity has increased by 30 percent.

• Despite several attempts to renegotiate the concession, initiated by the government in accordance with Djiboutian law, DP World persistently refused to consider the government's legitimate demands to redress an inherently asymmetrical relationship in order to allow its citizens to enjoy the benefits of the efficient operation of the terminal.

• Rather than comply with Djiboutian law and accept the Government's proposals (at both the contract renegotiation and post-termination compensation stages), the DP World group preferred to initiate a full-scale judicial and media battle against the Republic of Djibouti and its partners.

• To this end, DP World had no qualms about using DCT, of which it is only a minority shareholder, to serve its own interests and to disrespect, unscrupulously, the decisions handed down by the Djiboutian courts in strict compliance with the adversarial principle. These courts appointed a provisional administrator in place of DCT's corporate bodies and annulled the resolution of the Board of Directors which, under pressure applied by DP World, authorised DCT to initiate the arbitration procedure whose decisions today have been obtained on the basis of the DP World’ unilateral actions.

• In any case, the concession contract has been terminated, a public enterprise specifically created for this purpose now manages this infrastructure, and there can obviously be no question of imposing any contracting party on a sovereign State, especially in order to operate its strategic infrastructure.

• As the Republic of Djibouti has consistently indicated since the termination of the concession, the only possible outcome is allocation of fair compensation in accordance with international law. The State of Djibouti remains, as it has done so from the outset of this process, willing to negotiate the terms of a mutually satisfactory solution, but cannot accept arbitrary “convictions” that disregard the interests of the country and so-called “independent” expertise that can in no way serve as a financial “basis” for an agreement between the parties.
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