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London Court Confirms Djibouti Acted Illegally in Seizing DP World-Built Terminal

The London Court of International Arbitration (LCIA) has issued its final ruling in the case between DP World and Djibouti’s government-owned Port de Djibouti SA (PDSA).

The Tribunal confirmed that Djibouti’s 2018 seizure of the Doraleh Container Terminal (DCT) was unlawful. Although the Tribunal declined to award damages against PDSA on the basis that the harm was caused by the Government of Djibouti, not PDSA, DP World’s claims worth around $1 billion against the government and its partner China Merchants Port Holding remain active.

DP World’s existing arbitration awards of approximately $685 million against the government of Djibouti also remain valid and enforceable. The Government has so far refused to honour these binding awards, a clear act of contempt for the rule of law and international business standards.

The LCIA also confirmed that DP World’s 50-year concession agreement for Doraleh is legally valid and still binding, and the attempt to terminate it is unlawful. Yet, the Government continues to block DP World from exercising its rights at the terminal.

PDSA was awarded costs in this specific proceeding. However, earlier rulings by the LCIA found PDSA’s attempt to terminate DP World’s 2006 Joint Venture Agreement for DCT were unlawful. The net effect is that PDSA still owes DP World a substantial sum.

This ruling brings the LCIA arbitration proceedings to a close but does not end DP World’s wider dispute. DP World will pursue all available legal avenues to secure fair compensation and enforce its rights against the Government of Djibouti and China Merchants.

In response to the Republic of Djibouti’s article on 30 September, it is important to set the record straight and correct the false narrative being promoted by the Government.

False Claims vs Facts;

Claim: DP World’s $1 billion claim was “dismissed in full”

Fact: The Tribunal dismissed only the claim against PDSA, because the liability lies with the Government of Djibouti. Claims against the Government and China Merchants remain active.

Claim: The ruling “ends the dispute.”

Fact: DP World’s $685 million awards remain unpaid. Billion-dollar claims against the Government and China Merchants continue.

Claim: The seizure of DCT was lawful.

Fact: Multiple rulings by independent tribunals have confirmed the seizure was illegal and unlawful.

DP World also rejects false claims made by Djibouti’s leadership in response to the ruling. President Ismail Omar Guelleh’s recent video statement misrepresents the facts of the case and ignores numerous binding decisions by neutral courts.

“Djibouti’s claims are at odds with reality, proven time and again in independent international tribunals. It is extraordinary that the Government continues to spread a false narrative despite overwhelming evidence. This undermines investor confidence, damages Djibouti’s reputation, and ultimately hurts its people. DP World has successfully invested billions across Africa, and globally, creating jobs, infrastructure and growth. But this case is bigger than DP World — it is about whether governments can tear up binding contracts and ignore international law without consequence. Djibouti’s behaviour is a clear warning to serious investors,” said a DP World spokesperson.

Source: Port Wings Maritime Weekly

American Submarine Tender Frank Cable Docks at Chennai Port

 

The USS Frank Cable (AS-40), a Emory S. Land-class submarine tender and mobile repair platform that provides intermediate-level maintenance, logistics, and support to submarines and surface vessels in the Indo-Pacific, currently forward-deployed to the U.S. Naval Base on Guam, has arrived at Chennai Port for a brief halt.

Commissioned in 1979, USS Frank Cable is equipped to repair, rearm, and re-provision other ships and has a mixed crew of approximately 350 to 400 US Navy sailors and 150 civilian mariners. On 26 August, US Consulate in Chennai organized a guided tour for local media personnel to showcase the facilities in the vessel.

It may be noted that Frank Cable docked in an Indian port after a gap of three years. In August 2022, the vessel arrived in the Indian territorial waters and berthed at Vishakapatnam for a few days.

As part of the on-board tour, Executive Officer of the vessel, Commander Michael Rodriguez, briefed the media personnel. Commander Michael Rodriguez said: "Our job is to repair, rearm and resupply submarines in their home port or in other ports. We anchor away from the home port of a submarine and help them restore."

"This is a great opportunity to reinforce our partnership with the Indian Navy," he added.

Speaking about the presence of civilian mariners in the vessel, Commander Rodriguez said, “They go to another submarine or vessel when it is difficult to navigate in high sea. They are licensed by the US Coast Guard and inspect that submarine onboard and come back in order to take measures to restore it.”

The ship is also equipped to provide medical services on board with the appointment of two physicians and 18 individuals.

Briefing about the medical facilities to the visiting media contingent, Senior Medical Officer, Commander Kenneth Willaert, said, “We have various support staff to run the show. Some of the services offered are fixed x-rays, laboratory, pharmacy. We also have capabilities like blood bank as some have volunteered to donate blood in case we require blood transfusion.”

Repair Officer Jordan Klein and Supply Officer Michael Dausen also elaborated about the facilities available on-board Frank Cable.

According to information available on social media, Frank Cable docked at Ketapang Port, Banyuwangi, East Java, Indonesia, two weeks ago for a scheduled port visit, and set sail towards Chennai Port on 22 August.

Source: https://portwings.in/american-submarine-tender-franck-cable-docks-at-chennai-port

 

New Maersk Vessel Class To Enter Service

 

A.P. Moller - Maersk (Maersk) has named the first vessel in a series of 17,480 TEU vessels equipped with dual-fuel methanol propulsion. The naming event took place on 18 June at Hyundai Heavy Industries’ (HHI) yard in Ulsan, South Korea.

According to a media statement released from Copenhagen, the vessel, Berlin Mærsk, is the 14th dual-fuel newbuild entering the Maersk fleet, and it will be followed by additional five sister vessels in this new class of container ships.

“With the launch of the Berlin Mærsk class, we continue to build an ocean toolkit adaptable to multiple fuel pathways. Fleet renewal is essential for maintaining our competitive edge in ocean shipping, and it serves as a cornerstone of our commitment to decarbonisation,” says Anda Cristescu, Head of Chartering & Newbuilding at Maersk.

On 7 July, Berlin Mærsk will make its first port call in Shanghai, where it will enter service on Maersk’s AE3 service connecting Eastern Asia with Northern Europe.

Familiar design
The vessel's design closely resembles that of the previous Ane Mærsk class, from which Maersk has received a total of 12 dual-fuel vessels, all built by HHI. The only significant difference is the wider beam, which allows Berlin Mærsk to carry more containers. The increased capacity also makes it the largest dual-fuel ship to date to join the Maersk fleet.

“We are happy that we now begin taking delivery of the Berlin Mærsk series. Since our decision to order the first dual-fuel methanol vessel in 2021, we have come a long way with lots of other carriers investing in this propulsion technology as well. Our new Berlin Mærsk class builds on the foundation that we first laid with Laura Mærsk and later the Ane Mærsk class. The Berlin Mærsk class showcases our ongoing efforts in innovation and optimisation, setting a new industry efficiency benchmark," says Ole Graa Jakobsen, Head of Fleet Technology at Maersk. All six vessels in the series are being built by HHI with delivery in 2025. They will sail under the Danish flag. 

A.P. Moller - Maersk is an integrated logistics company working to connect and simplify its customers’ supply chains. As a global leader in logistics services, the company operates in more than 130 countries and employs 100,000 people world-wide. Maersk is aiming to reach net zero emissions by 2040 across the entire business with new technologies, new vessels, and alternative fuels. 

Contecon Manzanillo Enhances Capacity With New Equipment

Contecon Manzanillo (CMSA), International Container Terminal Services, Inc.’s (ICTSI) Mexican business unit and operator of the Second Specialized Container Terminal at the Port of Manzanillo, continues to enhance its operational capabilities with the acquisition of two quay cranes and four hybrid rubber tired gantry (RTG) cranes.

CMSA took delivery of the new equipment on May 11, further expanding its modern fleet. At 60 meters high, the quay cranes are the largest in the Americas. They enable agile and efficient operations on vessels up to 400 meters long with beams of more than 60 meters. The acquisition is part of the ongoing terminal expansion and supports CMSA’s goal of handling more than two million TEUs annually.

The cranes also mark a crucial step toward increasing Mexico’s global competitiveness and consolidating the Port of Manzanillo as a national leader in port operations. Once fully commissioned, the cranes will enable CMSA to simultaneously handle three ships with length overall of up to 400 meters each – effectively raising the standard of port operation in the region.

“By acquiring new port equipment and strengthening our infrastructure, we reaffirm our commitment to Mexican foreign trade and consolidate our position as one of the country’s leading logistics platforms,” explained José Antonio Contreras, CMSA chief executive officer.

Aside from the additional dock and yard equipment, CMSA’s expansion project also includes infrastructure upgrades that will enable the terminal to accommodate up to 24,000-TEU capacity megaships. The new berth, which will be completed in the coming months, is designed to handle vessels with drafts of -17 meters. This competitive and operational advantage will maximize the cargo capacity of ships crossing the Pacific from Asia. The Port of Manzanillo handles 70 percent of imports from Asia.

“Thanks to our strategic investments, we increased our operational capacity leading to 14 percent growth in 2024, moved 1.5 million TEUs, and contributed to the economic development of Manzanillo and Mexico,” added Contreras.

CMSA’s total investments from 2023 to 2026 will reach more than USD300 million. The Company will continue to allocate the needed resources to improve the terminal’s operation and ensure Mexican foreign trade access to the Pacific logistics routes, where shipping lines have increasingly deployed larger, deeper-draft vessels.

About Contecon Manzanillo SA de CV (CMSA)

In June 2010, ICTSI signed a 34-year concession for the development and operation of the Second Specialized Container Terminal (TEC-II) at the Port of Manzanillo in Mexico. ICTSI established a subsidiary, Contecon Manzanillo SA de CV to operate the Port of Manzanillo. Ideally located to serve the growing Asian trade, CMSA is Mexico's gateway to the Pacific coast and is close to major consumer markets, such as Mexico City and the country's largest industrial areas. (www.contecon.mx)

Maersk Reports Solid Results in Increasingly Volatile Environment

For the first quarter of 2025 A.P. Moller - Maersk A/S (Maersk) reports revenue growth of 7.8% to USD 13.3bn with EBIT increasing to USD 1.3bn from USD 177m a year ago. These results, while sequentially down as expected, represent a good start to the year and were driven by solid profitability in Ocean, operational improvements in Logistics & Services and higher volumes in Terminals. For the full year 2025, Maersk maintains its financial guidance despite the increased uncertainty leading to a more cautious container volume growth outlook.

“We delivered strong results compared to the same quarter last year, driven by momentum in our operational efficiency and a global economy in good shape for the first three months. With trade tensions flaring up and uncertainty on the rise, global supply chains are once again in the spotlight. We are happy to be able to put the full strength of our product offering at our customers’ disposal. From the most reliable Ocean network to one of the best lead logistics and customs support teams, we are pulling every lever to help them make the best decisions for their business. At the same time, we are doubling down on the work underway on automation and cost management to remain fit for what lies ahead. These efforts give us the confidence to deliver a result in line with our guidance communicated in February,” says Vincent Clerc, CEO of Maersk.

 

Ocean saw improved profitability compared to the same quarter last year due to higher rates and stable volumes with an EBIT of USD 743m while the sequential decrease was as anticipated. Utilisation remained high and costs were stable due to continued high focus on optimisation. The new East-West network, which was launched in February, is on track to deliver on the reliability ambition and cost efficiencies once fully phased in.

The EBIT margin in Logistics & Services improved compared to the first quarter of last year and reached 4.1% driven by multiple products and the continued focus on costs and productivity. Revenue from freight management services grew 18% compared to the same quarter last year driven by Project Logistics. Ongoing operational improvements in fulfilment services also contributed significantly.

 

Terminals continued its great performance driven by strong volume growth, higher revenue per move and increased storage revenue, while costs were under control through automation and increased capacity utilization. Return on invested capital (ROIC) increased to 14.5%.

Financial guidance

Maersk maintains its full-year 2025 guidance of underlying EBITDA of USD 6-9bn, underlying EBIT of USD 0-3bn and free cash flow of at least negative USD 3.0bn. The global container market volume growth has been revised to -1% to 4% given the increased macroeconomic and geopolitical uncertainty. Maersk expects to grow in line with the market. The disruption in the Red Sea is expected to continue throughout the rest of the year.

Source: Official Press Release

Baltic Container Terminal Welcomes New MSC Service

Baltic Container Terminal (BCT), International Container Terminal Services, Inc.’s (ICTSI) operation in the Port of Gdynia, Poland, has been integrated into the rotation of Mediterranean Shipping Company’s (MSC) Britannia Ocean Service.

MSC’s new service made its inaugural call in BCT on April 9, marked by the arrival of the MSC Rose. It offers a direct deep-sea connection between Asia and Northern Europe, covering major commercial ports such as Shanghai, Ningbo, Yantian, Vung Tau, Rotterdam, Hamburg, Antwerp, and Liverpool.

 

“BCT’s inclusion in MSC’s new service strengthens the Port of Gdynia’s role as a deep-water port and highlights our terminal’s modern facilities. We expect the service to increase export transshipment volume and boost intermodal operations,” said Wojciech Szymulewicz, BCT chief executive officer.

 

“With the arrival of this new service, we embrace the opportunity to expand our role in international maritime trade and make the Port of Gdynia more globally competitive,” he added.

 

BCT moved a total of 8,200 TEUs during the call of the 364-meter-long MSC ROSE, which was followed by the call of the 366-meter-long MSC DARIA on April 17. The vessels have capacities of 15,500 TEUs and 15,264 TEUs, respectively. Receiving regular calls from these ultra large container vessels highlights BCT’s capability to handle the largest vessels in existence, underlining the terminal’s strategic importance in the Baltic Sea region.

 

About Baltic Container Terminal Ltd. (BCT)

In May 2003, ICTSI was awarded a 20-year concession by the Port Authority of Gydnia to develop, operate and manage the container terminal in Pomerania, Gydnia, Poland. ICTSI purchased Baltycki Terminal Kontenerowy Sp. z. o. o. (BCT), which had held the lease to the terminal. Poland’s window to the world, BCT is strategically located within pan-European transport corridors and railway routes, and with excellent road and on-dock rail connectivity to inland Europe. (www.bct.gydnia.pl)

 

About International Container Terminal Services, Inc. (ICTSI)
Headquartered and established in 1988 in Manila, Philippines, International Container Terminal Services, Inc. (ICTSI) is in the business of port development, management and operations.  ICTSI’s portfolio of terminals and projects are located in developed and emerging market economies in the Asia Pacific, the Americas, and Europe, the Middle East and Africa.  Independent with no shipping or consignee-related interests, ICTSI works and transacts transparently with all stakeholders of the supply chain.  ICTSI continues to receive global acclaim for its public-private partnerships, which are focused on sustainable development, and supported by corporate social responsibility initiatives. (www.ictsi.com)