DURBAN, Dec 12 – South Africa’s state-owned logistics company Transnet has signed a 25-year concession agreement with global port operator International Container Terminal Services Inc. (ICTSI) to upgrade and run Durban Container Terminal Pier 2, the country’s busiest container gateway.
The deal, announced Wednesday, marks a major milestone in the government’s drive to overhaul Transnet’s operational performance, which has been a persistent drag on exports from Africa’s most industrialised economy. Pier 2 handles more than 40 percent of South Africa’s container volumes and is central to national and regional trade flows.
Under the agreement, ICTSI will take over operations from January 2026, initiating a long-term modernisation plan expected to significantly raise capacity and improve efficiency. The upgrade will include new cargo-handling equipment, digital systems, and enhanced yard and berth productivity.
Transnet Chief Executive Michelle Phillips said the partnership demonstrates the importance of private-sector collaboration in restoring the company’s operational strength and unlocking growth. She added that the deal aligns with Transnet’s broader strategy to attract investment, improve competitiveness, and stabilise the country’s logistics backbone.
Transnet will retain majority ownership in a newly established special-purpose vehicle formed for the partnership. The agreement follows extended legal challenges that delayed the selection of ICTSI as preferred partner but were ultimately resolved.
The initiative is one of several interventions aimed at reviving South Africa’s freight rail and port systems after years of underinvestment, equipment failures and declining service reliability.
