International Container Terminal Services, Inc. (ICTSI), a Philippine-based conglomerate, has reaffirmed the validity of its partnership with South Africa's state-owned Transnet for the development of Durban's Pier 2 terminal, despite a legal challenge brought by Danish shipping company Maersk. The dispute, currently before the KwaZulu-Natal High Court, could impact operations at one of South Africa's key trade gateways.
The court had previously issued an interdict halting the partnership following Maersk's legal filing. ICTSI was named the preferred bidder on April 11, 2023, but legal delays have disrupted plans for the terminal's upgrade.
ICTSI has expressed concern over the impact of further delays and reiterated its readiness to begin work. In a statement, the company said it remains committed to supporting Transnet in improving Pier 2's operational efficiency, transparency, and reliability.
The company also emphasized its neutrality, noting that, unlike Maersk, it does not operate a vertically integrated model combining shipping and terminal operations, allowing it to serve all shipping lines impartially.
ICTSI criticized Maersk's legal challenge, which it claims hinges on financial metrics that were not disqualifying factors. The dispute arises from the interpretation of financial disclosures during the Request for Qualification (RFQ) process, which took place in early 2022. ICTSI stated it fully met and exceeded the requirements, submitting a bid of R12 billion (approximately US$642 million), achieving a perfect evaluation score. By comparison, Maersk's bid amounted to R9.2 billion (about US$492 million) with an evaluation score of 83%.
Transnet confirmed that the matter is ongoing in the KwaZulu-Natal Division of the High Court in Durban. Both Transnet and APM Terminals have already made initial submissions, with ICTSI expected to present its case next. Transnet indicated it will await the court's ruling once all parties have concluded their submissions.
Meanwhile, Transnet Port Terminals CEO Jabu Mdaki underscored the terminal's strategic importance and noted that infrastructure investments at Pier 2 are ongoing despite the court proceedings. "Our position with Pier 2 is quite important for the economy. We are not going to compromise the viability of Pier 2," Mdaki said.
Source: IOL