Yemen's parliament may cancel DP World Aden port deal
Yemen's anti-corruption body said it would ask the country's parliament to cancel a deal with DP World because the Dubai-based operator had failed to fulfill its obligations in running the Aden container port, reported Reuters.
Yemen inked a contract with DP World, the world's third-largest port operator, 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.
Following a meeting on Tuesday, Yemen's anti-corruption body said DP World had failed to carry out investment projects on time. It threatened to take legal measures to get compensation for the "grave" damage done to the port as a result of the company's "poor" operation.
"The authority recommended that the government be called upon to quickly provide the necessary liquidity to implement the stumbling development of Aden container port and chose a new operator," state news agency Saba reported.
Earlier this year, Yemeni Rransport Minister Waaed Bazeeb told Reuters the company had missed a target of raising container capacity to 900,000 TEUs by the end of 2011, and failed to build and provide infrastructure as specified in the 2008 agreement.
Bazeeb also said DP World had failed to build a berth extension and had neglected an obligation to employ 450 workers from the previous port operator.
The agreement between DP World, one of the profitable units at indebted conglomerate Dubai World, and the Yemen Gulf of Aden Port Corp stipulates US$220 million of investment to develop the port.
