BIZ BUZZ: ICTSI vs Maersk Group

Razon-led International Container Terminal Services Inc. (ICTSI) is one of the world’s biggest port operators—and it continues to expand its footprint to take advantage of growing trading activities.

Last year, the port operator was chosen as the preferred bidder by Transnet SOC Ltd., a South African government state-owned company, to operate and develop Durban Container Terminal (DCT) Pier 2 at the Port of Durban under a 25-year contract.

This is a sizable contract, as DCT Pier 2 handles 72 percent of the Port of Durban’s throughput and 46 percent of South Africa’s port traffic.

But the deal has hit a stumbling block.

Global logistics player Maersk Group, one of the losing bidders, has gone to court to seek the disqualification of ICTSI, alleging that the latter did not meet the required solvency level, according to reports.

As a result, the Kwazulu Natal Division of the High Court of Africa issued a prohibition against Transnet’s selection of ICTSI until the petition is resolved.

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But the ports tycoon is not backing down. “ICTSI maintains that it met or exceeded the tender requirements set out by Transnet and will be countering this case in the appropriate legal manner,” the listed company.

Will the unsuccessful bidder succeed in challenging the preferred bidder? Let’s see!