International Container Terminal Services Inc. (ICTSI) on Monday expressed strong disappointment over legal action taken by rival Maersk APM Terminals that it claims are hindering efforts to take over the operations of a container terminal in Durban, South Africa.
ICTSI’s chairman and CEO, Enrique Razon Jr., accused Maersk of attempting to delay the process after failing to submit a competitive bid. He said Maersk’s move to block ICTSI’s 25-year agreement with Transnet is a desperate attempt to protect its market dominance in South Africa where Maersk has held sway for over two decades.
A South African court recently issued a temporary block on the ICTSI deal, a decision that Razon criticized as part of a broader campaign to prevent the entry of an independent terminal operator. Razon expressed concern the delay, which he blamed on Transnet’s lack of urgency, could undermine the potential for operational recovery and make it harder for any private partner to succeed in the region.
“These delays will curtail the operational recovery and make it more and more difficult for any private partner to succeed,” Razon said, adding that the legal challenge seemed designed to benefit Maersk’s interests.
ICTSI’s USD100 million bid over Maersk was accepted by Transnet as the best offer for the terminal takeover, which Razon defended as a “rigorous and transparent” process despite Maersk’s criticisms. He also asserted that the South African government’s economic goals were at risk due to Maersk’s legal strategy.
Maersk has not responded to ICTSI’s comments, but the dispute over the Durban terminal remains a key point of contention in South Africa’s competitive port operations.
