Enrique Razon, the chief executive officer of International Container Terminal Services, Inc. (ICTSI), has called out Maersk in a rare public statement for its attempt to overturn the award of state-run Transnet of a deal to run the Durban Container Terminal (DCT).

In October, the KwaZulu-Natal High Court ruled in favour of APM Terminals, prohibiting Transnet SOC Limited from awarding a tender for the Durban Container Terminal Pier 2 (DCT2) to ICTSI. APM earlier filed the case to challenge the tender award to the Philippine-based port operator.

"This was a well-run, rigorous, and transparent tender process despite what Maersk has attempted to make people believe," Razon, chairman and CEO of ICTSI, said.

He noted that ICTSI is one of the largest terminal operators in the world and added that "from an EBITDA standpoint, larger than Maersk's APM Terminals."

"We outbid Maersk by US$100 million, and they are attempting to use a non-essential technicality to ensure that the Government of South Africa does not succeed with part of its economic agenda," Razon added.

The ICTSI chief went on to note that "Maersk is now trying to question a non-defined metric that many of the largest public corporations in the world, including Apple Computer, could not meet", as well as many as 40% of the top 40 companies on the Johannesburg Stock Exchange.

Razon said Maersk has attempted to suggest their case required urgent intervention, but pointed out that "this is the same company that waited 9 months before launching a case after ICTSI's bid was accepted as the best."

"Maersk has dominated the South African market since it acquired SAF Marine over 20 years ago, and today, Maersk holds a dominant position and strong pricing leverage in the market," he said. "Maersk is clearly desperate to prevent the entry of an independent common user terminal operator. In short, after failing to produce a strong bid, they are instead trying to delay and stop the process by using the Courts."

In 2023, Transnet, the state-owned port operator in South Africa, granted ICTSI a 25-year concession to operate the Durban Container Terminal (DCT) Pier 2. In April of this year, APM Terminals, a subsidiary of Maersk that also submitted a bid for the concession, filed a case in the Durban High Court to challenge the award.

Razon also expressed concern about the legal dispute's impact on the country's supply chain, pointing out that South African businesses are "suffering more than ever from inefficiencies in the ports."

"We are more and more concerned that as these delays continue, there is a diminishing commitment within Transnet towards this private partnership," he said. "Transnet has not acted expeditiously and has dragged its feet at the highest levels."

"Volumes are down dramatically, and container port profitability is down significantly," the Filipino billionaire businessman added. "To be blunt, it will take even more work to resurrect the value of a business that has substantially declined since the tender was launched."

"It is, therefore, extremely disappointing that further delays are forthcoming. While we have great respect for the Judiciary and the strength of the South African legal system, we believe that serious bias has occurred and that Transnet's reputation has been used to derail the process. These delays will curtail the operational recovery and make it more and more difficult for any private partner to succeed."

Razon also  called out "Maersk's desire for end-to-end control of South Africa's logistics system."