(MENAFN) Yemeni city of Aden is working on scrapping contracts with DP World to manage Aden port, Reuters reported, citing a senior Yemeni official.
The official said that the board of Gulf of Aden Ports Corp decided to cancel the agreement with DP World, indicating that the authority began first contacts with Dubai state-owned port operator to complete the process of cancellation.
He added that the two sides would resort to international arbitration if they could not reach an agreement.
In June the country's anti-corruption body said it would ask parliament to cancel the deal with DP World, allegedly because the company had failed to carry out investment projects on time. At the time, DP World said the allegations were 'misleading and unfounded'.
Early this year, Yemeni transport minister Waed Abdullah Bathib said that DP World had failed to reach a target container capacity of 900,000 20-foot equivalent container units by the end of 2011, and had failed to build and provide infrastructure as specified in the 2008 agreement.