Transnet, ICTSI Sign 25-Year Deal to Transform Durban Container Terminal

Transnet said the initiative demonstrates its commitment to modernising core infrastructure while leveraging global operational expertise.

Transnet SOC Ltd and International Container Terminal Services Inc. (ICTSI)—the world’s largest independent terminal operator—have formally signed a 25-year partnership agreement to upgrade, operate, and develop Durban Container Terminal (DCT) Pier 2, South Africa’s busiest container terminal and a critical gateway for regional trade.

The agreement represents one of the most significant milestones in South Africa’s port reform and modernisation agenda, aligning with government efforts to enhance efficiency, attract private sector investment, and strengthen the country’s global competitiveness.

---

A Major Step in South Africa’s Economic Reform Strategy

In a statement released on Wednesday, Transnet described the partnership as a pivotal moment in advancing national economic reform goals and its corporate strategy to involve private sector expertise in strategic operational areas.

The partnership is expected to:

• Sharply improve terminal productivity

• Increase cargo throughput

• Strengthen container supply chain performance

• Reduce logistics costs and port delays

• Enhance South Africa’s trade competitiveness

Transnet said the initiative demonstrates its commitment to modernising core infrastructure while leveraging global operational expertise.

---

DCT Pier 2 Capacity and Efficiency Set for Major Boost

The upgrade programme will introduce new equipment, global-standard systems, and advanced cargo-handling technologies that will fundamentally improve terminal performance.

Key expected outcomes include:

• Capacity expansion: from 2 million TEUs to 2.8 million TEUs

• Gross Crane Moves per Hour (GCH): from 18 to 28

• Ship Working Hour (SWH): from 60 to 120

These improvements are designed to reduce turnaround times, support faster shipping schedules, and ensure a more reliable and competitive logistics ecosystem.

Transnet Group Chief Executive Michelle Phillips noted that DCT Pier 2 has already shown performance improvements due to recent equipment investments. She said the ICTSI partnership would “propel this crucial terminal to its full potential.”

---

Structure of the Partnership

A new special-purpose vehicle, Newco, has been established to operate the terminal:

• Transnet will retain majority shareholding, ensuring state ownership of the strategic asset

• ICTSI will be responsible for operations, applying its global expertise in terminal management

ICTSI has a proven track record across multiple continents, with strong credentials in improving port performance, efficiency, and customer service standards.

The joint partnership with Transnet Port Terminals (TPT) will officially take effect on 1 January 2026.

ICTSI was selected as the preferred bidder in July 2023 following a rigorous, transparent procurement process, reinforcing confidence in the partnership’s governance and integrity.

---

A Transformational Step for South African Ports

Michelle Phillips emphasised that Private Sector Participation (PSP) is a key component of Transnet’s broader transformation and infrastructure development strategy:

“PSP transactions help modernise and expand our key assets and improve efficiencies across our terminals. This strengthens South Africa’s export capacity and supports global competitiveness.”

ICTSI Senior Vice President Hans-Ole Madsen said the partnership represents a shared vision to revitalise South Africa’s maritime infrastructure, noting:

“Pier 2 is a strategic asset vital to trade, jobs, and economic growth. ICTSI is proud to invest in Durban’s future and bring global expertise to ensure Pier 2 becomes a world-class terminal.”

---

A Regional Growth Catalyst

The modernisation of DCT Pier 2 is expected to have far-reaching benefits for:

• South Africa’s export sectors

• Regional manufacturing and logistics

• Southern African Development Community (SADC) trade flows

• Investment attraction and industrial expansion

• Job creation and enterprise development

The Transnet–ICTSI partnership stands as a cornerstone of South Africa’s efforts to reposition its ports as efficient, competitive, and globally connected trade hubs.