May 23, 2013

DPIC plans to sue, Yemen could owe $30 million

Published on 6 September 2012 in News
Samar Qaed (author)

Samar Qaed


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ADEN, Sept. 5 — An official source at the Ministry of Transportation said the Dubai Ports International Company (DPIC) is planning to file a lawsuit against the Yemeni government because of the termination of their contract last month. The source said Yemen’s government could compensate the company an estimated $30 million if DPIC wins.

The source said the company’s evidence and claims are unsubstantiated, considering the company did not keep pledges with regard to operating Aden Port, in addition to its neglect toward the port. The company was not alert to heed Yemeni government cautions, the source said, adding that Aden’s port used to receive 160,000 ships annually under DPIC’s operation of the port; however, the port received 800,000 ships in 2007, prior to the start of the government’s contract with DPIC.

The source said the termination came after a team from the Ministry of Transportation travelled to Dubai in August to inform the company about upcoming procedures, but they didn’t respond. So, the agreement was terminated.

Abdullah Al-Khawlani, director of the Arab and International Economic Department, said in an interview with Al-Thawra newspaper that Yemen should avoid getting involved in international trials with DPIC because trials usually take a long time. He said the cost of the trial could cause more losses than gains for Yemen.

Al-Khawlani said Yemen has to solve the problem amicably, particularly because it could cause a political crisis with the United Arab Emirates, the support of which Yemen needs.

Al-Khawlani said DPIC’s argument could be stronger if they used the pretext of a lack of stability because of the political turmoil in Yemen at the time when they started to work in Aden.

He said DPIC has professional lawyers in maritime disputes, while Yemen doesn’t, giving the company an advantage should the issue require court involvement.

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