Transnet SOC and International Container Terminal Services, Inc (ICTSI) have signed a 25-year partnership agreement for Durban Container Terminal (DCT) Pier 2 in South Africa.
The agreement paves way for the joint partnership between Transnet Port Terminals (TPT) and ICTSI to manage the upgrade and development of Pier 2 to take effect on January 1, 2026.
Transnet holds a majority shareholding in a new special purpose vehicle, Newco, while ICTSI will be responsible for operation of the terminal.
In July 2023, Transnet selected ICTSI as the preferred bidder for the transaction following a rigorous and transparent procurement process.
Through the introduction of new equipment and advanced technology, DCT Pier 2 is expected to increase its capacity from 2 million to 2.8 million TEUs and improve gross crane moves per hour (GCH) from 18 to 28 as well as ship working hour (SWH) from 60 to 120.
These improvements are envisaged to reduce logistics costs and improve service quality, thus broadening market access and attracting new volumes.
Transnet Group Chief Executive, Michelle Phillips said: “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.
“Private sector participation (PSP) transactions are an important element of our strategy to modernize, expand and improve our key assets. 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.”