Durban: Transnet SOC Ltd and International Container Terminal Services Inc (ICTSI) have officially signed a 25-year partnership to manage and develop the Durban Container Terminal (DCT) Pier 2.
According to South African Government News Agency, this agreement is a significant step in the government's economic reform agenda and Transnet's strategy to involve the private sector in key business areas.
The partnership aims to improve terminal productivity and increase throughput, thereby enhancing operational efficiency and container supply chains. The introduction of new equipment and advanced technology is expected to boost DCT Pier 2's capacity from 2 million to 2.8 million twenty-foot equivalent units (TEUs), and improve Gross Crane Moves per Hour (GCH) from 18 to 28, as well as Ship Working Hour (SWH) from 60 to 120. These enhancements are anticipated to lower logistics costs and improve service quality, broadening market access and attracting new volumes.
Transnet Group Chief Executive Michelle Phillips expressed optimism about the partnership, stating that the investment in new equipment has already improved DCT Pier 2's performance. The collaboration with ICTSI is expected to further unlock the terminal's potential. As per the agreement, a new special purpose vehicle, Newco, will be created with Transnet holding a majority share, while ICTSI will manage terminal operations.
ICTSI, known for its global track record in port performance and efficiency, will commence this joint partnership with Transnet Port Terminals (TPT) on 1 January 2026. In July 2023, Transnet selected ICTSI as the preferred bidder following a transparent procurement process. Phillips emphasized the importance of private sector participation in modernizing and enhancing port assets, which is expected to improve efficiencies and transform ports into world-class hubs.
ICTSI's Senior Vice President Hans-Ole Madsen highlighted the partnership's potential to revitalize South Africa's maritime infrastructure, unlocking growth opportunities for the region. He acknowledged Pier 2 as a strategic asset vital to trade, jobs, and economic growth, expressing ICTSI's commitment to investing in Durban's future and working closely with Transnet to realize their shared vision.