Industry welcomes court ruling clearing way for Durban Port upgrade

INDUSTRY players have welcomed the KwaZulu-Natal High Court's decision to dismiss APM Terminals' application to overturn the selection of International Container Terminal Services Inc. (ICTSI) as Transnet's private equity partner for the upgrade of Durban Container Terminal (DCT) Pier 2 - a project seen as critical to restoring efficiency at South Africa's busiest port.

- YOGASHEN PILLAY

ICTSI was appointed as the preferred bidder in July 2023 for a 25-year joint venture with Transnet Port Terminals (TPT) to modernise and expand the facility.

Pier 2 is the largest single container terminal at Transnet and handles 72% of the Port of Durban's throughput and 46% of South Africa's container volumes, making it a critical gateway of trade. The State-owned logistics company said the ruling validated its procurement process, which it maintained was "rigorous and transparent". A financial soundness report confirmed ICTSI's ability to finance and execute the transaction.

ICTSI said the court found APM Terminals' challenge was both delayed and unfounded, noting that the company waited until March 2024 to file papers despite the concession being awarded in July 2023.

The judgment also noted ICTSI's transparency in its financial disclosures and emphasised that "a disagreement on a single financial ratio is not a basis to set aside the tender decision."