DP World Concession Row Costs Port of Antwerp-Bruges $44m+

The International Centre for Settlement of Investment Disputes (ICSID) has ordered the port of Antwerp-Bruges to compensate DP World with €41.3 million ($44.7 million) plus additional costs and interest, following an arbitration decision.

This substantial penalty, which might ultimately exceed €100 million, marks the end of a seven-year-long concession conflict at the Deurganck dock, a dispute that began nearly two decades ago.

The controversy began when the Deurganck dock, which started operations in September 2005, allocated its west side to MSC-PSA for the establishment of the port of Antwerp's largest container terminal, MPET. Concurrently, DP World was granted the east side to develop another terminal.

The situation escalated when PSA consolidated its container activities to Deurganck, leading to lower than expected cargo volumes for DP World. Consequently, the port assigned 40 hectares of DP World's concession area to PSA, a decision contested by the Dubai-based port operator. In response, DP World approached the ICSID in 2017 to resolve the conflict.

By April 2021, the tribunal acknowledged the port's repossession of the land on four grounds as justified. The lingering question, now resolved in favor of DP World, pertained to the adequacy and realism of the previously paid compensation in alignment with international law.

Owned by two municipalities, the port expressed its intention to examine the ruling closely, maintaining that the 2014 land repossession was critical for preserving international traffic and fostering job creation within the port's vicinity.

The Antwerp-Bruges Port Authority welcomed the resolution, highlighting its significance in providing legal clarity for all stakeholders involved, according to their statement.

Alphaliner, a container shipping analysis firm, pondered the judgment's implications on the possibility of reaching an amicable resolution between the parties. It underscored "the optimal and constructive operational cooperation and understanding of DP World, one of the most important terminal operators," suggesting the need for a collaborative approach moving forward.