DP World Wins $44.7M In Concession Dispute Against Port of Antwerp-Bruges

The Port of Antwerp-Bruges has been ordered to pay a hefty compensation of €41.3 million ($44.7 million), plus additional expenses and interest to DP World by an international tribunal in a long-standing concession dispute. The disagreement, which has lasted more than seven years, comes from a choice made almost twenty years ago on land distribution at the Deurganck dock.

The dispute started when the port moved a piece of DP World’s concession to its adjacent operator, MSC-PSA, to make space for more container operations. The activities of DP World were significantly damaged by this action, which resulted in a legal dispute that was resolved through arbitration at the International Centre for Settlement of Investment Disputes (ICSID).

The tribunal cited the public interest as justification for its initial decision, which supported the port’s authority to reclaim the land. Nevertheless, the port was found to have failed to sufficiently pay DP World for the loss during the later compensation phase of the arbitration process, which led to the substantial monetary award.

The Port of Antwerp-Bruges, controlled by the towns of Bruges and Antwerp, stated that it would be reviewing the judgment, but it believes that the decision to reclaim the area in 2014 was made to protect global trade and create jobs locally. The port authorities appreciated the decision despite the financial loss since it gave all parties concerned legal certainty.

One of the top terminal operators in the world, DP World, expressed satisfaction with the tribunal’s decision, highlighting the significance of fair compensation in settling disputes and preserving positive operational collaboration within the port.

In a complicated legal dispute between two major participants in the international shipping industry, the verdict represents a turning point, and it raises concerns about the dynamics and future collaborations within the Port of Antwerp-Bruges. As the port authority deals with the financial consequences of the verdict, the broader implications for international investment and concession agreements in maritime infrastructure are being examined.

The settlement of this dispute emphasises the crucial link between strategic, commercial, and legal interests in port operations, highlighting the necessity of fair and open dispute resolution procedures for the marine industry.

Reference: Splash247

DP World Wins $44.7M In Concession Dispute Against Port of Antwerp-Bruges appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News