APM Terminals challenges Transnet’s choice of ICTSI for DCT Pier 2 upgrade

APM Terminals has filed a case at the Durban High Court, challenging Transnet’s decision to select Manila-based International Container Terminal Services (ICTSI) to operate and upgrade the DCT Pier 2 in Durban.

Transnet said on March 1 that ICTSI was selected as the preferred bidder to partner in a 25-year joint venture with Transnet Port Terminals (TPT) to operate and upgrade the terminal, which is Transnet’s biggest container terminal handling 72% of Port of Durban throughput and 46% of SA traffic.

The terminal has 1,760m of operational quay length and 120ha of container yard, currently operating straddle carriers. It is the larger of the two container terminals in Durban, with an average volume throughput of 1.8M TEU compared with 0.7M TEU for Pier 1.

As well as lifting the operational performance of DCT Pier 2, Transnet wants to increase the capacity of the terminal from its current 2M TEU to 2.8M TEU.

It appears that APM Terminals threw its hat into the ring as well and is now contesting the award.

“APM Terminals had bid for the concession. We are confident about the bid we submitted to Transnet and about our ability to deliver what it is that Transnet, South Africa and all exporters and importers need. Our company’s mission is ‘Improving life for all by integrating the world,’ and we believe we would successfully deliver this in Durban,” APM Terminals said in a statement to WorldCargo News.

“As a part of A.P. Moller – Maersk, we have a long history of doing business in South Africa and have a vested interest to improve port operations. In that regard, we have in the past, and continue in the present, to assist Transnet where we can. It is not our intention to delay the process unnecessarily or to cause any disruption. Instead, we wish to ensure that a proper, fair and compliant process has been followed.”

The bidding process was launched in 2022, and according to Transnet, ICTSI was selected as the preferred bidder in July 2023. Nevertheless, APM Terminals claims that it received  final confirmation that Transnet would proceed with ICTSI as the preferred bidder on 1 March 2024.

“This challenge will not delay the process in any real sense and will rather ensure that the process is lawful,” APM Terminals added.

A reported by WorldCargo News, Transnet received considerable interest in the concession, having received 18 responses to its initial request for interests in August 2021, with nine of those coming from global terminal operators. A total of 10 bids were shortlisted in response to a request for qualifications. Of the shortlisted respondents, six bidders submitted proposals, according to Transnet.

WorldCargo News is yet to receive a comment on the matter from ICTSI and Transnet.