Transnet, the largest part of the freight logistics chain in South Africa, is wholly owned by the government. The sale and lease of land owned by Transnet in and around Port Elizabeth has been for years a highly contentious issue. As far back as 1999 Tsogo Sun leased land in connection with its failed bid for a casino licence and then leased it to property developer Charles Erasmus. After a Supreme Court ruling in favour of Erasmus, the two sides were instructed to negotiate a settlement.

Late last year Transnet put land out for tender that became part of Embo’s bid for the Nelson Mandela Bay casino licence. The company was informed on Friday that that it would not be leased the land and South Africa’s The Herald newspaper reports that the reason could be a letter sent to Transnet by the present Boardwalk casino licence holder and rival bidder for the Eastern Cape Gambling and Betting Board casino licence. However, Transnet says the application to lease the land was turned down because of environmental and viability concerns.

The Herald says the letter points out that Transnet could be taken to court if the land were leased to Embo because the tender stipulates a five to ten year lease (the casino licence is for fifteen years) and a casino development would not meet the tender criteria in respect of specifications and restrictions. Embo intends to submit a complaint to the ECGBB, alleging that the letter contravenes regulations governing bidders‘ conduct. (E-05.26.09)

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