South African Court Blocks Major Deal For Largest Container Port After Maersk Opposes

A South African court has temporarily blocked a major deal between the country’s state-owned logistics company, Transnet SOC Ltd. and International Container Terminal Services Inc (ICTSI), owned by Filipino billionaire Enrique Razon.

The deal aimed at expanding and operating Sub-Saharan Africa’s largest container port was opposed by Maersk.

APM Terminals, a subsidiary of Maersk, participated in the bidding process but was not selected. The company argued in court that ICTSI, the winning bidder, failed to meet a required solvency standard.

In response, the court issues an interim interdict, preventing Transnet from proceeding with the deal until further legal review.

Transnet has expressed its commitment to respecting the judicial process and continues to determine other options.

The delay limits efforts to improve the performance of South Africa’s ports, which are among the world’s least efficient, per a World Bank report.

The tender, issued last year, would have given ICTSI the right to manage nearly half of Durban’s main terminal for 25 years.

Other companies shortlisted for the bid included China Harbour Engineering Company, COSCO Shipping Ports, and DP World.

Maersk, the world’s second-largest container line, was one of the closest contenders, per the emails between Transnet and APM Terminals earlier this year.

Reference: Bloomberg

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