Maersk’s terminal-operating unit APM Terminals has obtained an injunction against its Philippines-based rival ICTSI’s successful bid to operate a container terminal in South Africa’s Durban port.
On 9 October, the Durban High Court acceded to APM Terminals’ application, which alleged that International Container Terminal Services, Inc. (ICTSI) received preferential treatment in the bid.
In July 2023, ICTSI was chosen as the preferred bidder to partner in a 25-year joint venture with Transnet Port Terminals (TPT) to develop and upgrade Durban’s Container Terminal Two (DCT2).
DCT2 is Transnet’s biggest container terminal, handling 72% of throughput from Durban and 46% of South Africa’s container volumes.
It was hoped that the terminal operator could grow DCT2’s current annual capacity from 2 million TEU to 2.8 million TEU.
APM asserted that there were inconsistencies in the assessment of ICTSI’s solvency and that the Philippines-based operator should have been rendered ineligible at the Request for Quotation (RFQ) stage and not allowed to progress with the tender.
APM Terminals insists that its own bid, which was US$149 million less than ICTSI’s US$515 million offer, should have qualified it for further discussions with Transnet.
ICTSI’s bid included pledging US$618 million for a minority shareholding in a special purpose vehicle, while APM’s lower bid was assessed to be insufficient.
South African media reports, quoting lawyers, stated that for a court to grant an interim interdict, the applicant must prove it had a good chance of success in the bid, suggesting that the courts felt that APM Terminals had strong reasons to contest the awarding of the tender to ICTSI.
Responding to the court’s decision, Transnet said in a statement that it is committed to the judicial process and is evaluating its options.
The port authority noted: “Transnet is committed to concluding the transaction expeditiously in the interest of economic growth and development.”
