Some announcements feel routine.. Others signal a shift in the economic weather.. What happened today in Durban sits firmly in the second category..
Transnet has officially signed a 25-year partnership agreement with the world’s largest independent terminal operator, International Container Terminal Services, Inc (ICTSI), to operate and modernise the Durban Container Terminal (DCT) Pier 2..
In the vast machinery of South Africa’s logistics system, Pier 2 is the beating heart.. It handles the lion’s share of the country’s container traffic, shapes supply chain reliability, influences export competitiveness, and ultimately impacts how South Africans live, trade, and grow..
Dr Andile Sangqu, Chairman of Transnet, framed the moment succinctly “This historic moment gives life to the South African government’s reform programme in ports and rail, and demonstrates the progress we are making in crowding in the private sector, as part of our Reinvent for Growth (R4G) strategy, which is our north star, guiding every critical decision and investment towards long-term success.”
“Transnet is intentional about securing DCT Pier 2’s future as a world-class gateway. The global logistics landscape is rapidly changing, requiring significant capital. The decision to partner with ICTSI in this terminal is driven by this reality,” added Dr.Sangqu..
The message from Transnet is clear.. This is not a handover, but a deliberate co-creation of value, guided by public oversight and private expertise..
What exactly has been signed, and why now..??
Transnet’s media statement confirms that the agreement establishes a new special purpose vehicle, Newco, to manage and develop DCT Pier 2..
Transnet holds the majority shareholding, ensuring national strategic control, while ICTSI will take operational responsibility for the terminal..
ICTSI is no lightweight partner.. The company operates 34 terminals in 19 countries across six continents, boasts a proven track record in turning underperforming ports into efficient hubs, and generated $2.74 billion in revenue in 2024 with 13.07 million TEUs handled globally.. In other words, this is an operator that knows how to run terminals that matter..
The decision to bring ICTSI into DCT Pier 2 stems from a simple commercial reality that the global logistics landscape is shifting fast.. Big ships, complex supply chains, and customer expectations around time, cost, transparency, and technology demand scale and capital that the state cannot provide alone..
What will be the impact on the ground..??
Capacity and productivity improvements
Through new equipment, advanced systems, and ICTSI’s operational model, Pier 2 is expected to:
- Increase annual capacity from 2 million to 2.8 million TEUs..
- Improve Gross Crane Moves per Hour (GCH) from 18 to 28..
- Double Ship Working Hours (SWH) from 60 to 120..
In logistics language, those numbers translate into faster vessel turnaround, reduced container dwell time, better landside coordination, and lower supply chain costs..
For shippers, this means less congestion, fewer delays, and improved predictability, the holy trinity of global trade efficiency..
Why this matters for South Africa..
South Africa has been wrestling with port inefficiencies for years.. Delayed cargo, slower crane rates, backlogged vessels, and rising costs have dented competitiveness, frustrated exporters, and forced some freight to neighbouring gateways..
By unlocking international expertise without surrendering ownership, Transnet signals that it has learnt the most important lesson of modern infrastructure management: performance is not ideological, it is operational..
As Michelle Phillips, Transnet Group Chief Executive, puts it plainly, “Private sector participation (PSP) transactions are an important element of our strategy to modernise, 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.”
When executed well, PSP does not weaken the state, it strengthens its ability to deliver economic outcomes..
A regional play, not just a national fix
Durban is not merely South Africa’s port.. It is Southern Africa’s primary maritime gateway and a trade artery for the region.. Elevating DCT Pier 2 strengthens supply chains from the Copperbelt to Gauteng and positions the country to attract additional trade volumes, investment flows, and industrial growth in related clusters..
ICTSI Senior Vice President Hans-Ole Madsen’s said “This 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.”
A symbolic shift in posture, not just policy
The symbolism should not be underestimated..
For decades, debates around ports and rail reform were entangled in politics, suspicion, and mistrust.. This agreement breaks that orbit..
It shows a state confident enough to protect the public mandate, humble enough to recognise the limits of state capacity, and ambitious enough to partner with the best in the world..
And the tagline borrowed from Dr Sangqu lands with new weight after today’s events “When Transnet works, South Africa thrives”..
Wishing Transnet and ICTSI all the very best and congratulations..
