Visit Dubai Roadshow in Durban and Scandal surrounding Bidder’s attempt to set aside Transnet’s unpopular R11 bn container deal fails

The Visit Dubai Roadshow recently took place this week with three South African cities playing host – Durban, Cape Town, and Johannesburg. The Roadshow presentation is about offering local travel industry professionals an opportunity to engage with the Dubai Emirati tourism representatives and learn what the Persian Gulf metropolis has to offer as a tourism destination.  

Bader Ali Habib, regional director for South Asia, the Middle East, and North Africa at the Dubai Department of Economy and Tourism (DET), said the events provided valuable insight into the South African market. “The sessions were an incredible expression of the rich tourism partnership between Dubai and South Africa,” he said. “It is also our tangible way of confirming DET’s commitment to the South African market.” South Africa is Dubai’s leading source of inbound tourism from Sub-Saharan Africa, with visitor numbers showing double-digit growth since 2022. Around 86% of South African visitors travel to Dubai as couples or families.

The roadshow allowed travel agents and industry representatives to meet face-to-face with more than 20 Dubai-based stakeholders, including hotels, attractions, and destination management companies, giving them first-hand knowledge of offerings likely to appeal to their clients.

 

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South Africa and especially Durban, Cape Town, and Johannesburg have a significant opportunity to grow their economies. The Dubai Department of Economy and Tourism (DET), stated the events in the respective cities were meant as research on the South African tourism Market as well as what South Africa and its cities like Durban have to offer. Dubai is a major port and tourism destination and so is Durban. Although Durban like other parts of South Africa have a long way to go to improve itself. Tourism is required to improve job creation in terms of the manufacturing, hospitality and tourism services. 

The meetings taking place at the Roadshow between South African travel agents and industry representatives and the Emirati stake holders are meant to focus on expanding business. The United Arab Emirates is one of South Africa’s most significant trading partners and a member of the BRICS Plus.

Meanwhile it appears there’s bad news on the horizon concerning the purchase and privatisation of Durban’s Container Terminal 2 (DC2) by Philippines, based International Container Terminal Services (ICTSI).

 

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The Durban high court has dismissed a bid by Maersk’s APM Terminals to put a stop to Transnet’s R11bn deal with Philippines-based International Container Terminal Services (ICTSI) for the privatisation of Durban’s Container Terminal 2 (DCT2). While APM — a runner-up in the tender process — had secured an interdict, stopping the implementation of the tender, it then sought to “review” the process to set aside the award of the 25-year concession. The case was heard by judge Mahendra Chetty earlier this year. On Friday he handed down his judgment, dismissing the review but ordering the parties to bear their own costs.

He said the question in the matter was whether a “slip” in the process of a contract of national importance should be reviewed and set aside at the instance of an aggrieved bidder — bearing in mind that judicial review was a discretionary remedy and it did not follow that an invalid act would be set aside.

 

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The deal concerning the auction and purchase of DC2 to a foreign company would especially be controversial. The question would remain if the Pilipino Company will choose to employ South Africans, such as locals from Durban at the harbour. Another more concerning question is who will benefit the most from the purchase the eThekwini region and Durban Metro or the municipal council? This is a matter the Durban High Court should take a careful look at (and no doubt they will). APM Terminals which is based in South Africa and uses Durban Port on behalf of Maersk to send its imports is unfortunately the most significant loser in this battle.  

In terms of transparency and being accountable for one’s own actions APM’s own motives for opposing ICTSI’s own much higher bid was called into question. Yes, there are always questions to these types of auctions that need answers. If ICTSI wins the case they should operate in accordance with South African laws since they are on South African soil. The economy of Durban Metro and eThekwini must be the major beneficiaries of any transaction.

Article written by:

Yacoob Cassim

Journalist at Radio Al Ansaar