APM Terminals Takes Legal Route to Block ICTSI Durban Port Contract

APM Terminals has initiated legal action in the Durban High Court, seeking to prevent a competitor from Asia from acquiring control of a key terminal in Durban, which is South Africa’s largest container facility.

The company, based in Manila, International Container Terminal Services (ICTSI), was slated to assume management of the Durban Container Terminal (DCT) Pier 2, a responsibility previously held by the state-operated Transnet, starting this month. Nonetheless, APM Terminals has intervened legally, challenging the 25-year tender award by claiming their bid was superior.

The details of the legal challenge filed by the Maersk subsidiary have not been disclosed.

This move by the South African government to privatize part of its port operations marks a significant shift, with the ICTSI award last July being a milestone after two decades of consideration.

Nine months prior, Transnet had announced ICTSI as the preferred candidate for a partnership to enhance and expand the premier Durban terminal, aiming to increase its capacity from the existing 2 million TEUs (twenty-foot equivalent units) to 2.8 million TEUs annually.