Global ports giant International Container Terminal Services Inc. (ICTSI) has scored a decisive win in its African expansion after the High Court of South Africa threw out a legal challenge filed by Maersk’s APM Terminals BV over the privatization of Durban Container Terminal 2 (DCT2).

The ruling removes a major obstacle for the Enrique K. Razon Jr.-led company, allowing it to move forward with a 25-year development contract for the biggest container terminal in the Republic of South Africa.

Decision upheld

In a stock exchange disclosure on Monday, ICTSI said the court upheld Transnet SOC Limited’s decision to award the project, finding that the state-owned port authority acted “within its discretion and complied with the principles of fairness and transparency.”

The High Court also validated ICTSI’s financial strength, saying the “solvency ratio was not the sole measure of financial qualification,” and ruled that APM’s challenge had been filed with undue delay.

Commitment reaffirmed

“ICTSI welcomes the court’s ruling and reaffirms its commitment to delivering long-term value and operational excellence at the DCT2 in close partnership with Transnet,” the company said.

Durban Container Terminal 2 is a critical gateway for trade in the RSA, handling nearly half of the country’s container traffic and serving as Transnet’s largest terminal.

The government has since signaled more privatization efforts, including the search for operators for Cape Town’s liquid bulk terminal and the RoRo terminal in Port Elizabeth.