The Port of Douala (PAD) in Cameroon has secured a major victory in its long-running legal battle with French conglomerate Bolloré over container terminal concessions. On June 19, the Court of Cassation, France’s highest court, ruled in favour of the port, overturning a previous decision that would have seen PAD pay €58.6 million (38.391 Billion FCFA) to a Bolloré subsidiary.
The dispute centred around the Douala International Terminal (DIT), formerly managed by Bolloré and its partner APM Terminals (APMT) for 15 years. After losing the bid for a contract renewal in 2019, DIT, now owned by the MSC Group, challenged the fairness of the process through arbitration with the International Chamber of Commerce in Paris. In November 2020, the chamber ruled in favour of DIT, ordering PAD to pay compensation for damages.
However, the latest ruling by the Court of Cassation throws a wrench into those plans. The court found irregularities in the arbitration tribunal, including allegations of collusion between a judge and a Bolloré lawyer. This procedural error formed the basis for the court’s decision to overturn the previous ruling.
While PAD celebrates this victory, DIT maintains that the case is not over. They argue that the Court of Cassation’s decision is procedural and doesn’t address the core issue of the alleged unfair bidding process. This suggests that the legal battle between the port and the former concessionaire may continue.
The outcome of this case has significant implications for the Port of Douala. A €58.6 million payout would have been a major financial blow. Additionally, regaining control of the container terminal allows PAD greater autonomy in managing its operations and potentially attracting new partnerships. The case also serves as a reminder of the importance of transparency and fairness in concession bidding processes.
