• Transnet–ICTSI partnership for Durban Pier 2 became effective on January 1, 2026
• Private investment targets higher capacity and improved terminal productivity
• Upgrade aims to ease congestion and lift South Africa’s logistics performance

The public-private partnership between Transnet SOC Ltd. and International Container Terminal Services Inc. (ICTSI) for the operation and development of Pier 2 at the Durban Container Terminal officially entered into force on January 1, 2026. ICTSI disclosed the development in a filing to the Philippine Stock Exchange.

The start of the partnership marks the operational phase of a process launched in 2023 to bring private capital into South Africa’s largest container terminal. The goal is to modernize the infrastructure, improve efficiency, and strengthen container supply chains.

The arrangement follows the signing on December 10 of a joint operating agreement between Transnet and ICTSI, which came after a lengthy legal dispute linked to the concession awarded to the Philippine group in July 2023. According to Transnet, the private investment program will support the rollout of new equipment and advanced technologies designed to significantly boost terminal performance.

Planned upgrades are expected to raise annual capacity at Pier 2 from 2 million to 2.8 million TEUs, increase gross crane moves from 18 to 28 per hour, and extend vessel working hours from 60 to 120. Authorities expect these improvements to reduce logistics costs and improve service reliability at the port.

Pier 2 is the core asset of the Durban Container Terminal and handles a substantial share of container traffic at both the port and national levels. However, years of structural bottlenecks across South Africa’s port system have weighed on performance, leading to persistent congestion and declining productivity at Durban.

Capacity constraints have been a key factor behind the poor showing of South African ports in the Container Port Performance Index published by the World Bank in September, which ranked them among the lowest performers out of 403 ports worldwide.

Henoc Dossa