Transnet and ICTSI Finalise Landmark 25-Year Partnership to Transform Durban Container Terminal Pier 2

Transnet SOC Ltd and International Container Terminal Services Inc (ICTSI) have officially signed a 25-year partnership agreement to modernise, operate and expand Durban Container Terminal (DCT) Pier 2, marking South Africa’s most significant port reform initiative to date.

The agreement was concluded on Wednesday in Durban and represents a major step in government’s efforts to introduce private-sector participation to improve efficiency across the country’s ports.

The deal establishes a new special purpose vehicle, Newco, in which Transnet holds the majority share, while ICTSI, headed by Filipino billionaire Enrique Razon, will take responsibility for terminal operations. ICTSI, the world’s largest independent terminal operator, was selected as the preferred bidder in 2023 after a rigorous procurement process. The partnership will take effect on 1 January 2026.

Under the agreement, ICTSI will invest approximately R11 billion into upgrading DCT Pier 2 with new equipment, advanced technology and modern operating systems. These improvements are expected to increase terminal capacity from 2 million to 2.8 million TEUs, boost Gross Crane Moves per Hour from 18 to 28, and raise Ship Working Hour performance from 60 to 120. Collectively, these upgrades aim to cut logistics costs, reduce vessel turnaround times and enhance South Africa’s competitiveness in global trade.

- Advertisement -

Transnet Group Chief Executive Michelle Phillips said the partnership supports the organisation’s long-term strategy to revitalise its port terminals. She noted that performance at DCT Pier 2 has already begun to improve due to increased investment in new equipment, and that ICTSI’s global track record will accelerate this trajectory.

“This ground-breaking partnership is a step forward in Transnet’s ambition to be among the world’s best ports,” Phillips said. “Private sector participation is central to our modernisation strategy and will help transform our terminals into world-class hubs.”

ICTSI Senior Vice President Hans-Ole Madsen said the company is committed to bringing global expertise to Durban to unlock economic opportunities for South Africa and the region. “Pier 2 is a strategic national asset, central to trade, jobs and economic growth,” he said. “We look forward to working closely with Transnet to execute our shared vision.”

Pier 2 currently handles about 70% of Durban’s container throughput and more than 40% of South Africa’s total container volumes. The partnership is widely viewed as a crucial intervention to revive a port system that has often ranked among the least efficient globally in recent World Bank assessments.

Industry observers expect the deal to position Durban more competitively, support economic growth and improve reliability for exporters and importers across the region.