Transnet, ICTSI ink 25-year Durban Pier 2 deal, industry calls for transparency
The deal is intended to boost throughput, modernise equipment and improve terminal performance — but industry groups say the transaction must be executed with full transparency and measurable delivery.
What the agreement covers
Transnet said the joint partnership — to be implemented through a new special purpose vehicle (NewCo), in which Transnet Port Terminals (TPT) will hold a majority stake (51%) and ICTSI will hold 49% — will see ICTSI responsible for terminal operations, while Transnet retains majority ownership. ICTSI was selected as the preferred bidder in July 2023 following a competitive procurement process.
Transnet expects the Pier 2 upgrade and development to increase annual capacity from 2.0 million to 2.8 million TEUs, raise Gross Crane Moves per Hour (GCH) from 18 to 28, and improve Ship Working Hour (SWH) performance from 60 to 120. The operator states that these gains will reduce logistics costs, attract new volumes, and broaden market access for South African trade.
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 upward 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 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. Private sector participation in ports has the potential to positively influence efficiencies, export processes and global competitiveness."
ICTSI’s senior vice president Hans-Ole Madsen 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. ICTSI is proud to invest in Durban’s future, bringing global expertise and technology to ensure DCT Pier 2 becomes a world-class terminal that benefits the entire region. We look forward to getting started, working closely with Transnet to execute our shared vision.”
SAAFF welcomes progress — but warns of risks
The Southern African Association of Freight Forwarders (SAAFF) welcomed the advancement of the Pier 2 public–private partnership, describing it as a potentially transformative step for South Africa’s port reform. However, SAAFF stressed there is “no margin for error” and urged robust oversight, transparency and accountability to ensure the concession benefits the national logistics system.
SAAFF’s statement flagged a number of areas requiring disciplined attention, noting the transaction was structured through NewCo with TPT (51%) and ICTSI (49%) and that commercial terms have not been publicly disclosed. The association called for independent scrutiny of terminal handling charges (THCs) and related fees, warning that opaque or poorly benchmarked tariffs could undermine competitiveness for exporters and importers.
SAAFF set out a list of expectations it says are essential to build and sustain industry confidence, including:
• A clearly defined and publicly communicated KPI framework;
• Transparent, realistic tariff-adjustment oversight aligned to inflation and productivity;
• Firm, time-bound investment commitments and disciplined delivery reporting;
• Full disclosure of the governance, mandate and performance obligations of NewCo;
• Visibility on labour transition, productivity safeguards and dispute-resolution mechanisms;
• Publication of safeguard mechanisms and recourse for industry if agreed service or investment levels are not met;
• Commitment to competitive neutrality and non-discriminatory access for shippers, forwarders and carriers.
Dr Juanita Maree, in a SAAFF statement, argued the concession must “demonstrate, through consistent action and verifiable results, that South Africa can set and sustain world-class benchmarks in port efficiency and logistics competitiveness.”
Expected operational and regional impacts
Transnet and ICTSI said the introduction of new equipment and advanced technology will underpin the anticipated productivity gains (GCH and SWH improvements) and contribute to lower operational costs. ICTSI’s corporate profile notes the operator runs 34 terminals in 19 countries and reported consolidated volume of 13.07 million TEUs and global revenues of US$2.74 billion for the year ended 31 December 2024 — credentials it says support its capacity to invest in long-range terminal upgrades.
For South Africa, SAAFF emphasised that Pier 2’s role as the primary container gateway means the concession must be coordinated with network enablers such as rail slot allocation, customs and border processes, digital integration and alignment with Gauteng’s hub and regional corridors to deliver end-to-end velocity across the supply chain.
What remains unclear
Several commercial details of the concession have not been disclosed publicly. SAAFF pointed to information revealed in recent court proceedings as raising questions that need independent oversight.
The association and other industry stakeholders will be watching for published KPIs, tariff frameworks and the timing and verifiability of capital investment plans once the concession moves into implementation.