Lessons from DRC private partnership at state-owned ports

THE ability of International Container Terminal Services, Inc. (ICTSI) to successfully meet its R12 billion tender commitment to the Durban port has been underscored by its recently announced financial results for the quarter ending 31 March.

- HANS-OLE MADSEN

The company posted revenue from operations of $745 million (R1.3 billion) - a 17% increase year on year. The results highlight its financial muscle and ability to operate South Africa's largest container port in partnership with Transnet and to help unlock South Africa's economic potential.

In an affidavit filed at the Durban High court, Transnet CEO Michelle Phillips also admitted “ICTSI plainly had and continues to have the necessary financial capacity.”

Yet the partnership between ICTSI and Transnet has been delayed by losing bidder Maersk who have stalled the process by pursuing a spurious legal action. Maersk’s legal case hinges on their own narrow interpretation of a non-material single accounting measure, despite the tender process being thorough, fair and transparent.

Independent auditors oversaw the process. After the concession for the Durban Container Terminal Pier 2 was awarded, ICTSI’s bid was subject to a further independent review.

ICTSTs financial clout to deliver on its commitment to Durban is further revealed when it estimates its capital expenditure for 2025 would be approximately $580m, a significant part of which will be channelled into expansions to port projects in the Philippines, Mexico, Brazil and the Democratic Republic of Congo.

In addition to serious financial flows, ICTSI has experience in upgrading and managing ports in a range of economies and developing nations. ICTSI currently runs 32 ports in 19 countries.