Damietta Port Authority and DIPCO settle long-running container terminal dispute
Damietta Port and DIPCO settle their years-long dispute: KGL International Ports, Warehousing & Transport and Damietta International Ports Company (DIPCO) have reached an agreement with the Damietta Port Authority (DPA) to settle all disputes between them, according to a statement (pdf) from KGL’s transport subsidiary, which owns a 25% stake in DIPCO.
Refresher: The dispute began in 2015, when the DPA scrapped its 2006 contract with DIPCO to build a new container terminal at the port, alleging DIPCO had failed to stick to the agreed time frame. The International Court of Arbitration (ICC) ordered the DPA to pay over USD 494 mn to DIPCO in 2020, but the Cairo Court of Cassation overturned the ICC’s ruling the following year.
Settlement conditions: The DPA will pay USD 100 mn to KGL International, USD 40 mn to DIPCO, and USD 120 mn to other involved parties. After the payments have been made, all sides will drop their cases and the dispute will be resolved.