DP World plays down talk of Aden contract cancellation

Ports operator refuses to confirm termination of agreement to manage Aden port

Image Credit: REUTERS
Cargo ships at the Port of Aden in southern Yemen. According to Reuters, the board of Gulf of Aden Ports Corporation decided to cancel the agreement with DP World, citing a breach of contractual obligations.
Gulf News

Dubai: Senior DP World officials have refused to comment on news that its contract to manage Aden Port has been cancelled. They termed the news part of a smear campaign.

Mohammad Sharaf, DP World CEO, said: “The tree bearing fruit gets stoned. We are not obliged to comment on this.”

According to Reuters, the board of Gulf of Aden Ports Corporation decided to cancel the agreement with DP World citing a breach of contractual obligations.

Sharaf said DP World has not received any official request related to the cancellation.“I have not heard such news. I can’t comment or even respond to a statement that has no credibility,” he said.

Sultan Bin Sulayem, Chairman of DP World, also refused to comment, terming the news “media speculation”.

On the other hand, Aden Ports Corporation also said they have not received official confirmation from the minister of transportation about any cancellation.

Reuters said that the port authority in the Yemeni city of Aden has begun talks with DP World on cancelling a contract to manage the Aden port.

“The board of Aden Ports Corp decided to cancel the agreement with DP World. There is contact with DP World to complete the process of cancellation amicably,” a Yemeni ministry official, who declined to be named under briefing rules, said.

He added that the decision had been taken on Saturday and the two parties would use international arbitration if they cannot reach an agreement.

In June, Yemen’s anti-corruption body said it would ask parliament to cancel the deal with the world’s third largest port operator, claiming DP World had failed to carry out investment projects.

DP World had termed the allegations “misleading and unfounded”.

Yemen signed a contract with DP World in 2008 to develop and run the port, whose strategic location at the mouth of the Red Sea once made it a vital stop for ships bound for the Suez Canal.

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