A South African court has dismissed a legal challenge by AP Moller-Maersk’s terminal unit, paving the way for International Container Terminal Services Inc (ICTSI) to assume control of Durban Container Terminal (DCT) Pier 2, the country’s busiest container facility.
The Durban High Court on Friday rejected Maersk’s bid to overturn the concession award, ruling that state-owned Transnet acted within the law when selecting ICTSI for the 25-year joint venture.
Maersk had challenged the award, claiming ICTSI’s bid relied on market capitalisation instead of balance sheet equity to meet solvency requirements, which it argued gave the Manila-based company an unfair advantage. However, the court found no irregularities in the tender process.
ICTSI welcomed the ruling, calling it “an affirmation of a fair and transparent tender process.” The decision clears the way for the Filipino operator, led by billionaire Enrique Razon, to move forward with its planned R11 billion ($638 million) investment in DCT Pier 2. The terminal handles 72% of Durban’s container throughput and 46% of South Africa’s total container volumes.
APM Terminals, which had been the runner-up in the tender, had filed its court action in April 2024, delaying Transnet’s broader strategy to attract private capital and expertise to modernise its underperforming ports. Following the ruling, APM acknowledged the importance of infrastructure development in Durban proceeding without further delay and said it was reviewing the judgment.
Transnet hailed the ruling as confirmation of the “integrity and transparency” of its procurement process. CEO Michelle Phillips said the group could now focus on “modernising and expanding DCT Pier 2,” a project considered critical to improving port productivity and South Africa’s trade competitiveness.
The concession forms part of Transnet’s larger initiative to attract private investment into its container terminals to reduce debt, upgrade facilities, and enhance operational efficiency.
