Transnet still in the mire

APM Terminals says the decision to challenge the selection of ICTSI for the Durban port development contract will not delay the overall construction process.

The South African port sector is experiencing profound, long lasting congestion that exceeds anything seen in the country in recent years. Waiting times of up to 20 days were reported at Durban in November, with about 70 vessels waiting outside the port at any one time. Cape Town recorded delays of up to 14 days, while congestion is also affecting the ports of Richards Bay and Gqeberha.

The turmoil and uncertainty at the South African parastatal Transnet continues with the CEO and CFO the latest to leave the company and the trading performance of its core rail and port divisions in disarray. South Africa’s ports are among the most expensive in the world to call at and its freight rail services among the least reliable.

ICTSI has beat out competition from eight other global terminal operators to emerge as the preferred bidder for a 25-year concession to operate DCT Pier 2 in Durban, South Africa.

In a statement last week, Transnet said it was confident that the agreement would help facilitate a binding and definitive agreement to resolve pending legal disputes, and thus free the way for the urgent delivery of electric locomotives to Transnet Freight Rail

Talks between South African transport utility Transnet and transport sector trades unions broke down on 6 October