DURBAN – In a move set to reshape South Africa’s logistics landscape, Transnet SOC Ltd has officially signed a landmark 25-year partnership agreement with International Container Terminal Services Inc (ICTSI), the world’s largest independent terminal operator. The deal, announced on Wednesday 10 December, will see the two entities collaborate on the upgrade and management of the Durban Container Terminal (DCT) Pier 2.
According to a statement the agreement serves as a cornerstone of the government’s broader economic reform agenda, which aims to stabilise and modernise key state-owned assets by crowding in private-sector expertise.
Boosting efficiency and capacity
DCT Pier 2 is South Africa’s biggest container terminal and a critical node in the Southern African supply chain. Under the new partnership the introduction of advanced technology and new equipment is projected to deliver significant operational improvements.
Transnet outlined ambitious targets for the collaboration:
- Capacity: Increasing from 2 million to 2,8 million 20-ft (6,1 m) equivalent units (TEUs).
Productivity: Improving gross crane moves per Hour (GCH) from 18 to 28.
Speed: Increasing ship working hour (SWH) rates from 60 to 120.
These enhancements are expected to lower logistics costs for local businesses, broaden market access and attract new shipping volumes to the port.
A strategic partnership
The partnership follows a rigorous procurement process that saw ICTSI selected as the preferred bidder in July 2023. Under the terms of the agreement a new special purpose vehicle, Newco, will be formed. Transnet will retain majority shareholding in Newco, ensuring state oversight, while ICTSI will assume responsibility for the terminal’s operations.
Transnet Group Chief Executive Michelle Phillips hailed the agreement as a vital step in transforming South Africa’s ports into world-class hubs.
“Private-sector participation (PSP) transactions are an important element of our strategy to modernise, expand and improve our key assets,” Phillips said. “Through our deliberate and expansive investment in new equipment across our terminals, the performance of DCT Pier 2 has been on an upwards trajectory. We expect that our partnership with ICTSI will further propel this crucial terminal to its full potential.”
Global expertise for local growth
ICTSI brings a wealth of global experience to Durban, with a strong track record of improving port efficiency worldwide.
Hans-Ole Madsen, Senior Vice President at ICTSI, expressed the company’s commitment to revitalizing the country’s maritime infrastructure.
“Pier 2 is a strategic asset for South Africa, critical to trade, jobs and economic growth. ICTSI is proud to invest in Durban’s future, bringing global expertise and technology to ensure DCT Pier 2 becomes a world-class terminal that benefits the entire region.”
The joint partnership between Transnet Port Terminals (TPT) and ICTSI is scheduled to take full effect on 1 January 2026.
You must be logged in to post a comment.