Under the agreement, DP World will cease its management of Aden Container Terminal (ACT) and Ma’alla Container Terminal at the Port of Aden with immediate effect and Aden Port Development Company (APDC), a wholly owned subsidiary of YGAPC, will take full responsibility for the port’s operations.
The move follows claims earlier this year by Yemeni Transport Minister Waed Abdullah Bathib, as well as the country’s anti-corruption body, that DP World had not fulfilled its contractual obligations under the 30-year management contract signed in 2008, which DP World rejected at the time as unfounded.
“We are pleased to have reached an agreement with DP World on an amicable basis after due deliberation. The agreement protects the interests of the Republic of Yemen and YGAPC and secures the future for this strategically located terminal. It provides stability and an excellent base from which to boost the national economy,” YGAPC said in a statement.
DP World added: “We are very satisfied with the agreement we have reached with the Yemeni parties including YGAPC, our joint venture partner. The agreement reached protects the interests of DP World, its partners and the Yemeni parties who will run and operate a terminal boosted by two new Liebherr superpost-Panamax quay cranes.
“We believe that the work we have started will go a long way in further supporting the facility’s position.”
In a separate move, DP World has sold its 60% shareholding DP World Breakbulk NV and AProjects NV in Belgium to Orienta NV for US$61.0M.
“This sale forms part of a restructure of our businesses in Antwerp and will allow us to strategically focus on our expertise in container terminal management and technical capability in which we have extensive experience,” said Rob Harrison, managing director of DP World’s businesses in Belgium.
The transaction was signed on 19 September and will finalise before the end of 2012.