A.P. Moller – Maersk A/S is disputing a selection process by South Africa's Transnet for a partnership to enhance the largest container port in sub-Saharan Africa. The contestation arises after International Container Terminal Services was chosen to acquire a significant share of Durban's primary container terminal and manage it for a quarter-century. APM Terminals, a Maersk subsidiary and a bidder in the process, is seeking legal redress through the Durban High Court.
Maersk's challenge underscores its demand for a transparent and equitable selection process. This legal move coincides with South Africa's efforts to improve the efficiency of its state enterprises by incorporating private sector capabilities. Transnet aims to elevate its port operations, currently underperforming on a global scale, and enhance the efficacy of its rail services critical to the mining industry.
Transnet defended its selection process, emphasizing its adherence to due diligence in partnering with ICTSI for Durban Container Terminal Pier 2's operation. The board confirmed the completion of financial evaluations and the contract's progression with ICTSI, led by Enrique Razon. ICTSI has opposed Maersk's legal challenge, refraining from further comments on the ongoing legal proceedings.
Source: moneyweb.co.za