ICTSI, Maersk In Legal Tussles Over Durban Terminal Concession Award In South Africa

 

Filipino billionaire businessman Enrique Razon has taken Maersk /APM Terminals to task over  attempt to legally overturn an award to run a container terminal in Durban.

The majority of Razon’s wealth is derived from his stake in International Container Terminal Services (ICTSI) a publicly traded ports operator.

Seatrade Maritime reports that South African state port operator Transnet awarded ICTSI a 25-year concession to operate Durban Container Terminal (DCT) Pier 2 in 2023. In April this year Maersk’s APM Terminals, which also bid for the concession lodged a case in the Durban High Court attempting to overturn the award to ICTSI.

“This was a well-run, rigorous, and transparent tender process despite what Maersk has attempted to make people believe,” stated ICTSI chairman and CEO Razon.

He noted that from an EBITDA standpoint Manila-headquartered ICTSI is larger globally than APM Terminals.

“We outbid Maersk by US$100 million and they are attempting to use a non-essential technicality to ensure that the Government of South Africa does not succeed with part of its economic agenda.”

Razon said Maersk was trying to “question a non-defined metric” that even some the world’s largest companies such as Apple would be unable to meet, as well as many of the top 40 listed companies on the Johannesburg Stock Exchange.

“Maersk has dominated the South African market since it acquired SAF Marine over 20 years ago and today Maersk holds a dominant position and strong pricing leverage in the market. Maersk is clearly desperate to prevent the entry of an independent common user terminal operator.

“In short, after failing to produce a strong bid, they are instead trying to delay and stop the process by using the Courts,” he stated.

Razon also noted that Maersk while saying the issue required urgent intervention had taken eight months to file the case.

“We are more and more concerned that as these delays continue, there is a diminishing commitment within Transnet towards this private partnership. Transnet has not acted expeditiously and has dragged its feet at the highest levels,” he said.

He noted that South African businesses are suffering “more than ever” from port inefficiencies with volumes and profitability down significantly.

“To be blunt, it will take even more work to resurrect the value of a business that has substantially declined since the tender was launched.” seatrade Maritime quoted him.