Transnet SOC Ltd and International Container Terminal Services, Inc (ICTSI) have signed a 25-year partnership agreement for Durban Container Terminal (DCT) Pier 2. The agreement forms part of South Africa's broader economic reform process and Transnet's plan to involve private operators in selected areas of its operations.
Under the arrangement, which takes effect on 1 January 2026, Transnet Port Terminals and ICTSI will jointly manage the upgrade and development of Pier 2. A new special-purpose vehicle, Newco, will oversee the terminal, with Transnet holding the majority share. ICTSI will assume operational responsibility. Transnet selected ICTSI as the preferred bidder in July 2023 following a procurement process.
© Transnet
The partnership includes plans for new equipment and updated technology. According to Transnet, this is expected to increase terminal capacity from 2 million to 2.8 million TEUs and raise Gross Crane Moves per Hour from 18 to 28. Ship Working Hour is projected to increase from 60 to 120. The organisation states that these adjustments are intended to improve operational efficiency and support container supply chains.
Transnet Group Chief Executive Michelle Phillips said that recent investments in terminal equipment had improved performance at Pier 2 and that the agreement is intended to support further operational gains. She added that private-sector involvement forms part of Transnet's strategy to modernise core assets and improve terminal efficiency.
Hans-Ole Madsen, Senior Vice President at ICTSI, said the partnership reflects a joint focus on upgrading South Africa's port infrastructure. He noted that ICTSI will work with Transnet on the development plan for Pier 2 and on implementing operational systems aligned with the agreement.
© ICTSIFor more information:
Ed Orlebar
ICTSI
Tel: +44 (0) 7738 724630
Email: [email protected]
www.ictsi.com
