Splash247: Court clears ICTSI to run Durban terminal after Maersk challenge fails

A South African court has dismissed a legal challenge by AP Moller-Maersk’s terminal arm against the award of a key port concession to International Container Terminal Services Inc (ICTSI), paving the way for the Filipino operator to take 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 tender, ruling that state-owned ports group Transnet acted within the law when it selected ICTSI for the 25-year joint venture.

The case centred on claims that ICTSI’s bid used market capitalisation instead of balance sheet equity to meet solvency requirements — a move Maersk said gave the Manila-based company an unfair advantage.

The court found no irregularities in the process. ICTSI welcomed the ruling, calling it “an affirmation of a fair and transparent tender process.”

The decision clears the way for ICTSI, led by billionaire Enrique Razon, to proceed with its planned R11bn ($638m) investment in DCT Pier 2, which handles 72% of Durban’s container throughput and 46% of South Africa’s total container volumes.

Maersk’s APM Terminals unit — which had been the runner-up in the process — lodged its court action in April 2024, delaying Transnet’s wider plan to bring in private capital and expertise to modernise its underperforming ports.

“We recognise the importance of operational improvements and infrastructure development in Durban proceeding without further delay,” APM said after the ruling, adding that it was still reviewing the judgment.

Transnet said the ruling “confirms the integrity and transparency” of its procurement process and removes a major hurdle to implementing the transaction.

Chief Executive Michelle Phillips said the group can now focus on “modernising and expanding DCT Pier 2”, a project seen as vital to improving port productivity and South Africa’s trade competitiveness.

The concession is part of Transnet’s broader effort to attract private investment to its container terminals to reduce debt, upgrade facilities, and improve operational efficiency.