According to Reuters, South Africa’s state logistics group Transnet has signed a 25-year concession agreement with Philippines-based terminal operator ICTSI to upgrade Durban’s main container terminal.
The deal is part of the government’s plan to address Transnet’s long-standing underperformance, which has hindered exports from Africa’s largest economy. ICTSI will take over operations at Durban Container Terminal Pier 2 starting January next year.
Pier 2 handles more than 40% of South Africa’s container volumes. The upgrade will increase capacity and efficiency through new equipment and advanced technology.
Transnet CEO Michelle Phillips said partnering with private companies is a key part of the state-owned company’s strategy to modernize and improve performance.
Transnet will retain a majority share in a special purpose vehicle set up for the ICTSI partnership. The project had been delayed due to a legal dispute over Transnet’s selection of ICTSI as a partner.
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