Yemen is seeking to renegotiate a joint venture agreement with DP World to run the Aden container port as the Dubai-based ports operator failed to fulfil its obligations, according to a Reuters report yesterday, quoting Yemeni Transport Minister Waaed Bazeeb.
When contacted by Gulf News, a DP World official said the company was not aware of such a development.
Yemen is seeking to renegotiate a joint venture agreement with DP World to run the Aden container port as the Dubai-based ports operator failed to fulfil its obligations, according to a Reuters report yesterday, quoting Yemeni Transport Minister Waaed Bazeeb.
When contacted by Gulf News, a DP World official said the company was not aware of such a development.
Bazeeb, as quoted in the report, said DP World had "missed a target" of raising container capacity to 900,000 20-foot equivalent container units (TEUs) by the end of 2011, and "failed to build and provide infrastructure" as specified in the 2008 agreement. Yemen in 2008 signed a deal with DP World to develop and run the Aden port, with the deal between the two parties requiring $220 million (Dh808.1 million) investment for the port's development.
"According to the operating agreement, the company was obligated to raise the number of containers arriving at the port to 900,000 by the end of last year. The number is not higher than 140,000 containers," Bazeeb was quoted as saying in the report, adding that the port operator had also failed to build a berth extension and had neglected an obligation to employ 450 workers from the previous port operator.
"Consequently, we have decided to renegotiate with the company regarding fulfilment of its obligations," he reportedly said.
DP World's shares closed down two per cent on Nasdaq Dubai yesterday at Dh9.80.
DP World on Wednesday said its Canada unit had signed a three-year deal to operate cargo terminals of Nanaimo Port Authority. It added that the deal gives the company the right to operate the port's facilities, including the general cargo Duke Point facility and Assembly Wharf.
DP World currently operates more than 60 marine terminals across the globe.
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