• Transnet and ICTSI sign a 25-year partnership to upgrade Durban’s Pier 2 terminal
• Private investment aims to boost capacity to 2.8 million TEU and improve productivity
• The deal forms part of South Africa’s broader port reform to ease congestion and raise efficiency

Transnet SOC Ltd (Transnet) and terminal operator ICTSI (International Container Terminal Services, Inc.) finalized a partnership on Wednesday, December 10, 2025, to manage the modernization and development of the Durban Container Terminal’s Pier 2 (DCT2). Under the 25-year agreement, Transnet will hold a majority stake in a new special-purpose entity, Newco, while ICTSI will operate the terminal.

This milestone follows the conclusion of a legal dispute challenging ICTSI’s concession awarded in July 2023. In October, the KwaZulu-Natal High Court dismissed APM Terminals BV’s request to overturn the award of the Durban Container Terminal Pier 2 concession to ICTSI.

According to Transnet, new equipment and advanced technology financed through private investment will expand terminal capacity from 2 million to 2.8 million TEU (twenty-foot equivalent units). Crane productivity is expected to rise from 18 to 28 gross moves per hour, while vessel working hours should increase from 60 to 120. These improvements are expected to reduce logistics costs, improve service quality, broaden market access, and attract new cargo volumes.

DCT, the largest container terminal in South Africa, handles nearly 72% of Durban Port’s total throughput and 46% of the country’s container volumes. Like other major South African ports, the terminal has struggled with capacity constraints in recent years, reflected in chronic congestion and declining productivity. These challenges contributed to South African ports’ poor ranking in the Container Port Performance Index (CPPI), published in September by the World Bank, which placed them among the lowest performers of the 403 evaluated.

The process underway in Durban forms part of a broader restructuring effort aimed at using private investment to boost capacity across all major ports, including Cape Town, Richards Bay, and Ngqura.

Henoc Dossa