Philippines-based International Container Terminal Services, Inc. (ICTSI) has confirmed the legitimacy of its collaboration with Transnet for the development of Durban's Pier 2 terminal. The ongoing legal dispute with Danish shipping firm Maersk returned to the KwaZulu-Natal High Court, potentially affecting one of South Africa's key trade gateways.
Last year, the High Court issued an interdict, temporarily halting the ICTSI-Transnet partnership following Maersk's legal challenge. Despite ICTSI being announced as the preferred bidder on April 11, 2023, the court's decision has delayed upgrades to the terminal, causing frustration.
ICTSI has expressed concern that the legal proceedings could further delay necessary improvements. In a recent statement, ICTSI emphasized its readiness to start the project, asserting that its partnership with Transnet would enhance operational efficiency and transparency at Durban Container Terminal Pier 2.
"ICTSI stands ready to begin implementation immediately and remains committed to partnering with Transnet to deliver improved operational efficiency, transparency, and reliability at Durban Container Terminal Pier 2," the company stated.
ICTSI highlighted its impartiality in serving all shipping lines, contrasting itself with Maersk. "Unlike Maersk, ICTSI is not vertically integrated into shipping and port operations, allowing it to serve all shipping lines impartially," it said regarding the delays caused by Maersk's legal challenge. ICTSI reiterated its confidence in the integrity and transparency of the process managed by Transnet.
ICTSI criticized Maersk's challenge for being based on the financial solvency ratio, a non-disqualifying factor in the tender process. "It is important to clarify that ICTSI and all other bidders disclosed their financials during the Request for Qualification (RFQ) phase in early 2022," ICTSI stated. "ICTSI not only met but exceeded the required criteria, offering approximately $636 million for the concession and receiving a 100% evaluation score compared to Maersk's $487 million and 83% score."
Transnet acknowledged the legal proceedings at the KwaZulu-Natal High Court in Durban. "Transnet and APM Terminals made their initial submissions to the court and will make further submissions tomorrow (Wednesday), followed by ICTSI's presentation," Transnet noted, awaiting the court's decision.
Transnet Ports Terminals CEO Jabu Mdaki mentioned ongoing investments in Pier 2 infrastructure despite the legal hold on the partnership. "Our position with Pier 2 is quite important for the economy. We are not going to compromise the viability of Pier 2, which is why we continue investing in equipment like the 20 straddle carriers," Mdaki stated.
Mdaki also confirmed an order for four STS cranes for Pier 2, expected to be delivered in the second half of the year, emphasizing the importance of maintaining and strengthening the terminal's operations.
Source: IOL