Rival bidders question selection of proposed partner for Durban container terminal

12th January 2024

By: Bloomberg


Font size: - +

South Africa’s selection of Filipino billionaire Enrique Razon’s harbour firm as a partner to revive sub-Saharan Africa’s biggest container port is being questioned by losing bidders.

Companies that lost out to International Container Terminal Services Inc. for the right to buy almost half of the main container terminal in the southeastern port city of Durban and operate it for 25 years have demanded to know why it won the deal.

“Some of the rival bidders have requested Transnet to provide the basis for the selection of ICTSI as the preferred bidder,” said State-owned Transnet, which operates all the main ports and freight rail system. “The company is in the process of responding to any requests for information.”

A challenge from a rival bidder would present another obstacle to what’s expected to be South Africa’s first port privatisation. Labour union leaders this week said they’ve demanded that ICTSI agree not to cut any jobs for the duration of the 25-year contract and that they don’t expect their demand to be accepted.

Transnet has said there were six bidders at the final stage. In an August 2022 statement, Transnet said ten bidders had been shortlisted.

APM Terminal, Cosco Shipping Ports, DP World and Global Port Services were among those that submitted bids.

China Harbour Co. Engineering submitted a joint bid with Guangzhou Port Co and Grindrod Freight Services teamed up with Hamburger Hafen Und Logistik. Red Sea Gateway Terminal bid together with MMC Port Holdings, while Star Classic Investments bid with Abu Dhabi Ports and Remgro joined up with Terminal Investment.

Under the agreement, ICTSI will pay an undisclosed amount for almost half of Durban Container Terminal Pier 2 and help expand the facility, which accounts for three-quarters of the volumes that passes through the port and 46% of the nation’s total port traffic.

In a 2022 World Bank index of container-port performance, Durban ranked 341st out of 348. Two other Transnet harbours were also in the bottom 11.

ICTSI operates terminals across six continents.

Edited by Bloomberg


Latest News

Image of the Jaecoo J7
Jaecoo launches its first cars in South Africa
Updated 2 hours 5 minutes ago By: Irma Venter



Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...


Latest Multimedia

sponsored by

Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.103 0.16s - 176pq - 2rq
Subscribe Now