MANILA, Philippines — Ports tycoon Enrique Razon Jr. has scored logistics giant AP Moller-Maersk for allegedly trying to control South Africa’s shipping industry by delaying the privatization of the Port of Durban.
Razon, majority owner of International Container Terminal Services Inc. (ICTSI), yesterday lamented the delay suffered by his company in receiving the 25-year concession for the Durban Container Terminal (DCT) Pier 2 at the Port of Durban, the largest in South Africa.
Razon blamed the delay to alleged maneuvers of Maersk, which lost the bid for DCT Pier 2 to ICTSI by at least $100 million.
The tycoon disputed Maersk’s claim that ICTSI failed to comply with bidding requirements, such as the solvency threshold. The bidding demanded a solvency ratio, which looks at how capable a company is in meeting its long-term liabilities.
APM Terminals, owned by Maersk, used these tender requirements to question ICTSI’s ability in undertaking the privatization of the DCT Pier 2. APM Terminals filed a protest before a court in South Africa, and was awarded the right to proceed in October.
In response, Razon said ICTSI stands as one of the biggest port operators in the world, turning in revenue numbers that are larger than APM Terminals.
“We outbid Maersk by $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,” he said.
“In short, after failing to produce a strong bid, they [Maersk] are instead trying to delay and stop the process by using the courts,” he added.
Further, Razon attacked state-run Transnet SOC Ltd. for its reported diminishing commitment in proceeding with the privatization of the DCT Pier 2.