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Transnet SOC Ltd. and International Container Terminal Services, Inc (ICTSI) officially signed on December 10 a 25-year partnership agreement for the operation and development of Durban Container Terminal Pier 2 in South Africa
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The agreement takes effect January 1, 2026
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Under the agreement, Transnet holds a majority share in a new special purpose vehicle, Newco, while ICTSI will be responsible for the terminal’s operation
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Through the introduction of new equipment and advanced technology, Transnet said DCT2 is expected to increase its capacity from 2 million to 2.8 million TEUs and improve gross crane moves per hour from 18 to 28
Transnet SOC Ltd. and International Container Terminal Services, Inc (ICTSI) officially signed on December 10 a 25-year partnership agreement for the operation and development of Durban Container Terminal Pier 2 (DCT2) at the Port of Durban, South Africa.
The agreement, which takes effect on January 1, 2026, paves the way for the alliance between Transnet Port Terminals (TPT) and ICTSI to manage the upgrade and development of DCT2, Transnet said in a statement.
Under the agreement, state-owned Transnet holds a majority share in a new special purpose vehicle, Newco, while ICTSI will be responsible for operation of the terminal.
Transnet said the agreement also marks a pivotal moment in the South African government’s economic reforms agenda and Transnet’s strategy to bring in the private sector into selective and strategically identified areas of the business.
The partnership is expected to enhance terminal productivity and increase throughput, ultimately improving the organisation’s operational efficiency and container supply chains.
Transnet, which owns South Africa’s railway, ports and pipelines infrastructure, awarded the contract to ICTSI in July 2023. Last October, ICTSI was cleared to operate DCT2 after the High Court of South Africa dismissed a case filed by losing bidder APM Terminals BV challenging the Transnet decision.
READ: ICTSI wins case to operate Durban terminal over Maersk
DCT2 is Transnet’s biggest container terminal, handling over 70% of the Port of Durban’s throughput and approximately 46% of South Africa’s port traffic. The terminal has 1,760 meters of operational quay length and 120 ha of container storage and backup area.
Through the introduction of new equipment and advanced technology, Transnet said DCT2 is expected to increase its 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.
Transnet said these improvements are seen to reduce logistics costs and improve service quality, thus broadening market access and attracting new volumes.
“Through our deliberate and expansive investment in new equipment across our terminals, the performance of DCT Pier 2 has been on an upwards trajectory. We expect that our partnership with ICTSI will further propel this crucial terminal to its full potential,” Transnet Group chief executive Michelle Phillips said.
“It is also a big step in our efforts to improve efficiencies across our terminals and transform our ports into world-class hubs. This is consistent with our approach to enhance efficiency and growth through strategic partnerships. Private sector participation in ports has the potential to positively influence efficiencies, export processes and global competitiveness,” she added.
READ: ICTSI Jan-Sept income rose 19% on volume, port operations growth
ICTSI senior vice president Hans-Ole Madsen said the partnership “marks a shared commitment to revitalising South Africa’s maritime infrastructure and unlocking new opportunities for growth for South Africa and the entire region.”
“Pier 2 is a strategic asset for South Africa, critical to trade, jobs, and economic growth. ICTSI is proud to invest in Durban’s future, bringing global expertise and technology to ensure DCT Pier 2 becomes a world-class terminal that benefits the entire region. We look forward to getting started, working closely with Transnet to execute our shared vision,” Madsen said.
