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Logistics

Transnet counters threat to imminent port privatisation

08 Apr 2024 - by Staff reporter
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South Africa’s logistics utility has confirmed that it has filed an opposing affidavit against a bid by the ports operator of AP Moller–Maersk to interdict the privatisation process at the Port of Durban of International Container Terminal Services Incorporated (ICTSI).

This emerged after it was reported this morning that APM Terminals (APMT) had filed papers at the Durban High Court, citing that it had not been allowed a proper, fair and compliant opportunity against the Filipino concession company’s bid.

This is despite the Manila-based operator winning the contract last year as the “Preferred Bidder” for the 25-year joint venture with Transnet Port Terminals (TPT) to develop and upgrade the terminal.

According to APMT, the bidding process started in 2022 but they only heard about ICTSI’s successful bid on March 1.

However, ICTSI’s successful bid was announced last July.

Should APMT successfully interdict its rival against rolling out the management of Durban Container Terminal (DCT) Pier 2, it will throw a spanner in the works of long-awaited privatisation getting under way this month at the regularly congested port.

In response to APMT’s court bid, South Africa’s state-owned logistics utility said: “In processes of this nature, it is to be expected that a bidder would find reason to contest an outcome that is not in their favour.

“Transnet believes that it followed due process in appointing the preferred partner for its DCT Pier 2, and will allow the legal process to take its course.”

Business Day reported that AP Moller–Maersk, the Danish operators of Maersk, had said: “We have a long history of doing business in SA and have a vested interest in improving port operations.

“In that regard, we have in the past, and continue in the present, to assist Transnet where we can.”

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