Some of the announcements seem normal. Others indicate a change in the economic situation. What happened today in Durban is in the second category.
Transnet has officially signed a 25-year partnership agreement with the world’s largest independent terminal operator. International Container Terminal Services, Inc. (ICTSI)for operation and renovation Berth 2 Durban Container Terminal (DCT)...
In the vast machinery of South Africa’s logistics system, Pier 2 is the beating heart. It handles the lion’s share of the country’s container traffic, shapes supply chain reliability, affects export competitiveness and ultimately affects how South Africans live, trade and grow.
Dr. Andile Sangqu, Transnet Chairman, sketched the moment succinctly.This historic moment brings to life the South African government’s Ports and Rail reform agenda and marks our progress in crowding out the private sector, as part of our Reinvent for Growth (R4G) strategy, which is our North Star, guiding every critical decision and investment towards long-term success.“
“Transnet aims to secure DCT Pier 2’s future as a world-class gateway. The global logistics landscape is changing rapidly and requires significant capital. The decision to partner with ICTSI on this terminal stems from this fact.Dr. Sanggu added..
Transnet’s message is clear. It is not a handover, but an intentional co-creation of value driven by public oversight and private expertise.
What exactly was signed and why now??
Transnet’s media release confirms that the agreement will create a new special purpose vehicle, Newco, to manage and develop DCT Pier 2.
Transnet holds a majority stake and ensures national strategic control, while ICTSI will take over operational responsibility for the terminal.
ICTSI is not a lightweight partner. The company has 34 terminals in 19 countries on 6 continents, has a proven track record of turning underperforming ports into efficient hubs and boasts $2.74 billion in 2024 with 13.07 million TEU handled globally.
The decision to bring ICTSI to DCT Pier 2 stems from the simple business reality that the global logistics landscape is changing rapidly. Large ships, complex supply chains, and customer expectations of time, cost, transparency, and scale demand technology and capital that government alone cannot provide.
What effect will it have on the earth..??
Improve capacity and productivity
Through new equipment, advanced systems and ICTSI’s operating model, Pier 2 is expected to:
- Annual capacity increase from 2 million to 2.8 million TEU.
- Improved gross crane movement per hour (GCH) from 18 to 28.
- Two ship working hours (SWH) from 60 to 120..
In logistics parlance, these numbers translate into faster vessel turnarounds, reduced container dwell times, better coordination at the shore, and lower supply chain costs.
For shippers, this means less congestion, fewer delays, and improved predictability, the holy trinity of global trade efficiency.
Why is this important for South Africa?
South Africa has been struggling with port inefficiencies for years. Delayed shipments, slower crane rates, delayed ships and rising costs have reduced competition, frustrated exporters and forced some cargoes to neighboring gateways.
By unlocking international expertise without surrendering ownership, Transnet demonstrates that it has learned the most important lesson of modern infrastructure management: performance is not ideological, it is operational.
As Transnet Group Chief Executive Michelle Phillips puts it bluntly:Private Sector Partnership (PSP) transactions are an important element of our strategy to modernize, expand and improve our key assets. It is also a major step in our efforts to improve efficiency across our terminals and transform our ports into world-class hubs. This is consistent with our approach to drive efficiency and growth through strategic partnerships.“
When PSP is well implemented, it does not weaken the government, but strengthens its ability to deliver economic results.
A regional game, not just a national fix
Durban is not just a port in South Africa. It is South Africa’s main sea gate and trade artery for the region. Raising the DCT 2 berth will strengthen the supply chain from the Copperbelt to Gauteng and position the country in related clusters to absorb additional trade volumes, investment flows and industrial growth.
ICTSI Senior Vice President Hans Ole Madsen said:This partnership represents a shared commitment to revitalize South Africa’s maritime infrastructure and open up new opportunities for the growth of South Africa and the entire region. Pier 2 is a strategic asset for South Africa, vital for trade, jobs and economic growth.“
A symbolic change in status, not just policy
Symbolism should not be underestimated.
For decades, debates over ports and rail reform were mired in politics, suspicion, and mistrust. This agreement breaks this circuit.
It represents a government confident enough to protect public mandates, humble enough to recognize the limits of government capacity, and ambitious enough to partner with the world’s best.
And a slogan borrowed from Dr. Sangko’s lands with new weight after today’s events.When Transnet works, South Africa thrives“..
Best wishes to Transnet and ICTSI and congratulations..
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