Transnet has announced that the review process for the Durban Container Terminal’s (DCT) Pier 2 will proceed without undue delay, following an interim court ruling that has raised questions about the award of the contract to Philippines-based International Container Terminal Services Incorporated (ICTSI).
In a statement released on Friday, Transnet confirmed its intention to approach the court soon to secure a preferred date for the hearing of the review application.
The interim interdict, delivered on Wednesday last week, does not annul ICTSI’s status as the preferred bidder, despite legal action from APM Terminals, the unsuccessful bidder.
APM Terminals aims to interdict Transnet from finalising the contract for revitalising Pier 2, while a forthcoming Part B hearing will address the legitimacy of Transnet’s decision to select ICTSI.
“It would, therefore, be premature to make any determination in this regard,” Transnet commented.
As part of its commitment to transparency and good governance, Transnet has pledged to abide by the interim interdict. The organisation stresses that this measure showcases its dedication to building public trust in its procurement processes.
“Our commitment to the highest standards of accountability and transparency through good governance is unwavering,” Transnet asserted.
The developments surrounding DCT Pier 2 are integral to Transnet’s broader corporate strategy aimed at realising the government’s structural reforms agenda.
In expanding partnerships with the private sector, Transnet aims to improve efficiencies, enhance competition, and stimulate economic growth. The DCT Pier 2 project represents a cornerstone of this strategy, marking an essential step towards stabilising port container volumes and tackling the backlog in maintenance caused by historical underinvestment.
Bongiwe Gune, an assistant lecturer for transport and logistics at the University of Zululand-Richards Bay Campus, emphasised the crucial role of the Port of Durban as a gateway for South African sea trade and the potential benefits of the ICTSI contract.
She noted that ICTSI’s experience in port operations could lead to enhanced efficiency, reduced turnaround times, and improved cargo handling processes.
“This can lower costs for logistics companies and shippers. In addition, improved port operations can contribute to more resilient supply chains,” she explained.
However, challenges persist within the South African logistics sector.
Gavin Kelly, CEO of the Road Freight Association (RFA), expressed concern over the ongoing inefficiencies at the Port of Durban, suggesting that the process of integrating private sector operators has faced significant obstacles.
“It is a pity that... this process of implementing a private operation in the Port of Durban still has not resulted in efficiencies being improved at the port,” he remarked.
Kelly called for urgent reforms, as South Africa’s neighbouring ports have greatly enhanced their services, leading to a decline in shipping lines choosing South African ports.
“We cannot, as a country and more importantly as the logistics supply chain, allow this trend to continue,” he warned.
Kelly said the RFA remained hopeful that the court proceedings will pave the way for a transparent introduction of private players into the Port of Durban and restore faith in South Africa’s logistics capabilities.
BUSINESS REPORT