A South African court rejects the opposition of Apm Terminals, paving the way for a $638 million investment in the country’s most important container terminal
Manila – The Philippine company ICTSI (International Container Terminal Services Inc.) will be able to take over the management of the Pier 2 container terminal in the port of Durban, the busiest in South Africa, after the Durban High Court rejected the legal appeal filed by Apm Terminals, the terminal division of the Ap Moller-Maersk group.
The case revolved around the accusation by Maersk that ICTSI used its market capitalization, rather than its balance sheet net worth, to meet the solvency requirements in the tender — an element which, according to Maersk, gave it an unfair advantage.
The court, however, ruled that Transnet, the South African state-owned port group, acted in accordance with the law in selecting ICTSI for a 25-year concession in a public-private joint venture.
ICTSI welcomed the ruling, describing it as a confirmation of the correctness and transparency of the tender process. The agreement will now allow the operator led by billionaire Enrique Razon to proceed with an 11 billion rand (approximately $638 million) investment to modernize the terminal, which handles 72% of Durban’s container traffic and 46% of South Africa’s total volumes.
The appeal by Apm Terminals, filed in April 2024, had delayed Transnet’s broader plans to attract private capital and operational expertise to South African ports, which are often criticized for structural and operational inefficiencies.
After the ruling, Apm acknowledged the importance of proceeding with infrastructure interventions in Durban without further delays, while reserving the right to examine the verdict in detail.
Transnet stated that the judgment confirms the validity and integrity of the tender process and allows efforts to be focused on the modernization and expansion of DCT Pier 2, considered crucial for improving the country’s port productivity and commercial competitiveness.
The concession is part of a broader strategy by Transnet to open up to private capital, with the aim of reducing debt, renewing infrastructure, and increasing the efficiency of South African container terminals.
