The Durban High Court ruling on October 13 in favour of Transnet and its preferred public-private partner (PPP) for a 49% concession of the Port of Durban’s Pier 2 container terminal has been hailed as “a strategic investment for South Africa”.
It paves the way for International Container Terminal Services Incorporated (ICTSI) to finally get involved following a lengthy court process after APM Terminals at first successfully appealed against the initial tender process.
To make up for lost time following initial litigation, lodged in July 2023 and effectively halting privatisation, the South African Association of Freight Forwarders has issued a statement underscoring the urgency of getting to work right away.
“While the process has faced challenges and public scrutiny, there is still work to be done,” says the association’s chief executive, Dr Juanita Maree.
The court’s upholding of ICTSI as Pier 2 concessionaire for a period of 25 years “represents a pivotal moment for South Africa’s ongoing efforts to reform its port model”, she says.
Given APMT's initial objections to the tender process, Maree adds: “Saaff proceeds under the assumption that the ICTSI decision was made in good faith, in compliance with legal good standing, and in the collective national interests of the country.
“Therefore, the focus must now shift to ensuring this partnership delivers measurable outcomes aligned with international best practices – transparency, competitiveness and accountability.”
Commenting on the back of consistent improvement at the country’s port network, especially waterside throughput, Maree described the ICSTI-Transnet PPP as “one of the most consequential public-private partnership arrangements in South Africa’s port management history to date”.
She says it will directly impact South Africa’s national economic recovery, the liberalisation of trade and infrastructure through regulatory reform, and has wide-reaching implications for capacity building and the recovery of trust among global investor circles.
Maree adds that delays in the PPP process, mainly through legal proceedings, have exacted a measurable toll on the South African economy.
“Saaff is today calling on government and industry stakeholders to unite and accelerate efforts, to progress toward the commissioning stage of this critical project.
“While opinions among the logistics community have varied regarding the chosen model and operator, the fact remains that this is now the structure within which South Africa must work.
“Saaff’s priority is to ensure that this model evolves into a benchmark for performance-based partnership, grounded in accountability, international comparability, and shared value creation across the logistics ecosystem.”
- This post only covers part of the Saaff statement referred to. The rest will be covered next week.
