Shipping containers are transported on a Maersk Line vessel through the Suez Canal in Ismailia, Egypt July 7, 2021. REUTERS/Amr Abdallah Dalsh/File Photo
(Bloomberg) —
A South African court temporarily blocked a deal between the nation’s state-owned logistics firm and a company owned by Filipino billionaire Enrique Razon to expand and run sub-Saharan Africa’s biggest container port after A.P. Moller-Maersk A/S challenged the award.
Maersk unit APM Terminals was among the unsuccessful bidders in a tender run last year by South Africa’s state-owned Transnet SOC Ltd. to sell almost half of the main terminal in the southeastern city of Durban and operate it for 25 years. The Copenhagen-based company argued in court papers that the preferred candidate, International Container Terminal Services Inc., didn’t meet a stipulated solvency measure.
The so-called interim interdict against Transnet will remain in place until the court hears the second part of the challenge brought by APM Terminals.
Maersk called the decision a “welcomed development” and said in a statement it was preparing for the second part of the legal review process “with confidence, and we remain committed to playing a role in developing South Africa’s infrastructure.”
Transnet said in a seperate statement that it was committed to the judicial process and was evaluating its options.
The decision in the Durban High Court delays the biggest attempt yet to bring in private expertise to revive Transnet’s ports, which rank among the least-efficient in the world, according to a World Bank study. Transnet operates most of South Africa’s ports and its freight railways.
Shipping giant Maersk is the world’s second-largest container line and Denmark’s biggest company by revenue. Subsidiary APM Terminals was the runner-up in the process, according to correspondence with Transnet included in legal documents seen by Bloomberg in May.
Transnet shortlisted the firm along with companies including COSCO Shipping Ports Ltd., DP World Ltd. and China Harbour Engineering Company Ltd. and Guangzhou Port Co. Ltd.
© 2024 Bloomberg L.P.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,123 members that receive our newsletter.
Have a news tip? Let us know.
One year after the hijacking of the M/V Galaxy Leader, the maritime industry continues to grapple with an unprecedented crisis in the Red Sea. The car carrier, en route to...
The 2017-built Maersk Halifax has become the first large containership to be converted to methanol fuel, Maersk announced on Monday. The extensive retrofit operation, which concluded at the end of...
At least five cargoes of liquefied natural gas have diverted from Asia to Europe in the past few days, drawn by higher gas prices on the continent after Russia's Gazprom halted supplies to Austria's OMV, data from analytics firm Kpler showed.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,123 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
