CONTRACT CONTESTED: COURT CASE IN DURBAN DELAYS PORT REJUVENATION.
The legal challenge by losing bidder APM Terminals against Transnet's decision to award a 25-year contract to manage and develop the Durban pier 2 terminal to Philippines-based competitor, International Container Terminal Services Incorporated (ICTSI), has delayed the planned revitalisation of the port and cost the fiscus billions of rands in tax revenue.
The public sector partnership (PSP) contract, awarded in July last year, allows ICTSI to acquire 49% of the port company for a total investment over 25 years of about R11 billion.
This capital investment amounting to no more than a few months' interest on Transnet's galloping debt - would go a long way to restoring Durban's vaunted status as Africa's premier port.
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