KEY POINTS
- ICTSI to run Durban Container Terminal Pier 2 under a 25-year concession.
- Deal marks South Africa’s first major port concession.
- Investment expected to run into billions of rand over life of contract.
South Africa’s state-owned freight utility Transnet has signed a 25-year concession agreement granting International Container Terminal Services Inc. operating control of Durban Container Terminal Pier 2, the country’s busiest maritime gateway.
The deal, long awaited by industry stakeholders, hands Filipino billionaire Enrique Razon’s ICTSI a key role at a terminal that handles more than 40 percent of South Africa’s container traffic.
The agreement is the first major port concession in South Africa and forms part of the government’s strategy to bring private sector expertise into critical logistics infrastructure while retaining state ownership. Transnet has faced years of criticism from exporters, miners, and manufacturers over chronic congestion, equipment breakdowns, and shipping delays that have undermined competitiveness.
ICTSI to invest in modernising terminal operations
Under the terms of the concession, a special-purpose company will oversee the terminal, with Transnet holding a majority stake while ICTSI assumes operational control.
ICTSI is expected to invest billions of rand across the concession period, covering cranes, yard equipment, IT systems, and workforce training aimed at lifting productivity and reducing vessel turnaround times.
The company expects operations under the new structure to begin early next year, subject to final conditions. ICTSI won preferred-bidder status in 2023, though the process faced legal and political scrutiny over bringing private operators into infrastructure long treated as strategic.
Transnet sees partnership as cornerstone of turnaround
Transnet Group Chief Executive Michelle Phillips said the Durban port concession is central to the organisation’s turnaround plan, describing it as a shift toward world-class operational standards after global rankings repeatedly placed South African ports among the poorest performers. Billionaire Africa says Durban’s port has suffered from ship queues lasting days, low crane productivity, and persistent maintenance failures.
For ICTSI, which runs ports across Latin America, Europe, Asia, and the Middle East, Pier 2 offers a strategic foothold on one of Africa’s most important maritime corridors.
For South Africa, the Durban port concession will serve as a test case for whether public-private partnerships can revive deteriorating state-run logistics assets without triggering a broader privatisation push.
