Durban container terminal works halted

According to South Africa-based news website Independent Online (IOL), the Johannesburg-headquartered rail, port and pipeline firm said it pulled the venture, awarded to CMI Emtateni Joint Venture in July, on the basis of its own forensic investigation following allegations brought up by a losing bidder. IOL said that Transnet was carrying on with “its organisational clean-up” with the move.

Transnet noted that it had chosen to issue the “stop work” instruction pending the investigation’s result “in the interest of good corporate governance”.

The company, whose stock is mostly owned by the government of South Africa, said that CMI Emtateni Joint Venture had won the contract after an open tender process, but the unsuccessful bidders had indicated unhappiness and brought up several issues, as well as lodging a court application challenging its choice to give the contract to CMI Emtateni Joint Venture.

Transnet claimed that it chose to cancel the multibillion-rand contract to allow for a transparent investigation that would determine its legitimacy.

Background

According to Transnet Port Terminals, Durban Container Terminal, located in South Africa, is the largest and busiest container terminal in Africa.

The canned venture was aimed at deepening and lengthening the Pier 2 North Quay berth, and according to Econometrix chief economist Dr Azar Jammine, the facility expansion was a vote of confidence on the economic development of South Africa.

However, he added: “But if that infrastructure development is done in a corrupt manner, I think we are better off without such a project.”

Just hours before the contract was pulled, former Transnet group chief executive Siyabonga Gama lost a court bid to get his job back after he was fired by Transnet in October after investigations suggested unlawful activity on his part.

The Maine Marine Construction works contract was awarded during Mr Gama’s tenure.