APM Terminals, part of Maersk, has initiated legal proceedings to contest the award of the Durban T2 terminal concession in South Africa to another bidder. This action follows the announcement by Transnet, a South African government entity, of its intention to partner with International Container Terminal Services (ICTSI) from the Philippines for the terminal's privatization.
The legal challenge by APM Terminals arises from concerns regarding ICTSI's financial qualifications and compliance with the tender's conditions, specifically regarding the solvency criteria necessary for the investment and development of the port and its facilities. The dispute centers on the selection process that began in 2021, attracting 18 initial expressions of interest, including nine international firms, leading to six final proposals. ICTSI was eventually awarded a 25-year concession in July 2023, aiming to enhance the operational efficiency of Durban's container terminal, which is critical for South Africa's maritime trade. The outcome of this legal challenge could impact the future of port privatization efforts in South Africa.
Source: maritime-executive.com