Djibouti says its new container port to remain in state hands amid concerns of growing China influence
The Doraleh Container Terminal is a key asset for the tiny state on the Red Sea whose location is of strategic value to countries such as the United States, China, Japan and former colonial power France
Djibouti’s container port will remain in state hands as the government seeks investment, a senior official said on Wednesday in comments likely to reassure Washington where lawmakers say they fear it could be ceded to China.
The Doraleh Container Terminal is a key asset for Djibouti, a tiny state on the Red Sea whose location is of strategic value to countries such as the United States, China, Japan and former colonial power France, all of whom have military bases there.
Djibouti last month terminated the concession of Dubai’s state-owned DP World to run the port, citing a failure to resolve a six-year contractual dispute.
The cancellation accelerated diplomatic competition in Djibouti and renewed concerns in a number of capitals that other nations could use it to strengthen their influence.
The port would remain “in the hands of our nation” as the government seeks new investors, said Djibouti’s Inspector General Issa Sultan, who oversees infrastructure for President Ismail Omar Guelleh.
“There is no China option and no secret plans for the Doraleh Container Terminal,” he told Reuters in an interview. “The port is now 100 per cent managed by the state.”