THE chairman and CEO of International Container Terminal Services, Inc (ICTSI) Enrique K Razon Jr has released a statement slamming Danish shipping giant Maersk's legal challenge, through its APM Terminals company, which halted ICTSI's privatization of South Africa's Durban container port.

Transnet, a South-African-government-owned port, rail, and pipeline company had initiated a bidding process to privatize and rehabilitate the port.

ICTSI had won the bid; however, in what Mr Razon has called an attempt by Maersk "to use a non-essential technicality to ensure that the Government of South Africa does not succeed with part of its economic agenda", adding that APM Terminals challenged ICTSI on a "non-defined metric that many of the largest public corporations in the world could not meet".

Mr Razon went on to lament the delays in implementing the project, citing the diminishing value of the Durban port project and attributing them in part to Transnet "dragging its feet" on its way to a resolution.

Lawyers working for APM Terminals managed last month to put rival ICTSI's entry into South Africa's largest container port on hold, adding another embarrassing setback to the African nation's bid to privatize and improve their port facilities.

A South African court decided to temporarily block ICTSI's 25-year deal with state-run Transnet to take over the running of a container terminal in Durban.

APM Terminals took the matter to court when it lost the bid, arguing that ICTSI did not meet a stipulated solvency measure.

The court found that Transnet's decision to award ICTSI the contract was "potentially flawed and unfair to the other bidders".

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

"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."

Mr Razon pointed out that the qualification rules were very clear.

"Transnet could and can evaluate the bidders in whatever way was in line with the law and met the public interest. Maersk is now trying to question a non-defined metric that many of the largest public corporations in the world could not meet, including Apple Computer.

"It is also not possible for as many as 40 per cent of the top 40 companies on the Johannesburg Stock Exchange, including South Africa's largest banks and insurers. Moreover, Maersk has attempted to suggest their case required urgent intervention, however, this is the same company that waited 9 months before launching a case after ICTSI's bid was accepted as the best."