Filipino giant questions Transnet over pier bid

Philippines-based International Container Terminal Services Incorporated (ICTSI), the preferred bidder for the Durban pier two terminal, has questioned the commitment of Transnet’s executives to follow through on government policy to introduce private sector players in the management of the country’s troubled ports. A Business Day report says Enrique Razon, chair and CEO of ICTSI, issued a strong statement condemning losing bidder APM Terminals, a subsidiary of Danish logistics major AP Moller-Maersk, for wanting to keep its dominance of SA’s port system. He also directed his criticism towards the leadership of Transnet. ‘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,’ Razon said. ‘We believe that there are possibly elements in the organisation that do not want the process to succeed, despite it not being a secret SA businesses are suffering more than ever from inefficiencies in the ports. Volumes are down dramatically and container port profitability is 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.’ The multiyear agreement between Transnet and ICTSI has been temporarily halted after a legal challenge by APM Terminals, which has argued that ICTSI was unduly favoured by the state-owned freight and rail group. KZN High Court (Durban) Judge Robin Mossop last month issued an interdict that highlights serious flaws in the procurement process.

Full Business Day report