Legal Battle Brews Over Durban Port Privatization Bid

Legal Battle Brews Over Durban Port Privatization Bid

South Africa’s logistics utility has confirmed its opposition to a bid by the ports operator of AP Moller-Maersk to halt the privatization process at the Port of Durban by International Container Terminal Services Incorporated (ICTSI).

The dispute arose following reports that APM Terminals (APMT) filed papers at the Durban High Court, alleging it was not given a fair opportunity to contest ICTSI’s bid, despite ICTSI being awarded the contract as the “Preferred Bidder” last year.

APMT claims it only learned about ICTSI’s successful bid on March 1, despite the announcement being made last July.

If APMT succeeds in its bid to halt the handover of management of Durban Container Terminal (DCT) Pier 2 to ICTSI, it could delay the long-awaited privatization process, which was set to begin this month.

In response, South Africa’s state-owned logistics utility stated that it believes it followed due process in selecting the preferred partner for DCT Pier 2 and will allow the legal process to proceed.

AP Moller-Maersk, operators of Maersk, emphasized their commitment to improving port operations in South Africa and stated their willingness to assist Transnet where possible.