Transnet and ICTSI Sign Landmark 25-Year Partnership to Boost Durban Port Efficiency
South Africa’s efforts to overhaul its logistics and port operations took a major step forward today as Transnet SOC Ltd and global port operator International Container Terminal Services, Inc. (ICTSI) officially signed a 25-year partnership agreement for Durban Container Terminal (DCT) Pier 2 – the country’s single largest container handling facility.
The agreement is widely viewed as a pivotal milestone in government’s broader economic reform agenda and a critical component of accelerating private-sector participation in strategic logistics corridors.
A strategic response to South Africa’s logistics crisis
South Africa’s economy has struggled in recent years as bottlenecks at major ports and inefficiencies throughout the freight logistics network constrained export competitiveness, raised business costs, and inhibited economic growth.
These challenges were so severe that port and rail reform became one of the key pillars of Operation Vulindlela, the joint Presidency–National Treasury initiative focused on clearing structural blockages in the economy.
While improvements have been slow and incremental, marginal gains have recently begun to filter through — a sign that reform momentum is finally taking hold.
The partnership with ICTSI represents one of the most significant reform breakthroughs yet. As the world’s largest independent terminal operator with a proven track record in turning around underperforming ports, ICTSI brings global best practice, modern equipment, and advanced technologies to a terminal that handles the majority of the country’s container throughput.
A major upgrade for DCT Pier 2
Under the agreement, Transnet will retain majority shareholding in a new special purpose vehicle, Newco, while ICTSI will take operational responsibility for DCT Pier 2.
The upgrade and development programme, effective 1 January 2026, is expected to deliver:
- Capacity expansion from 2 million to 2.8 million TEUs
- Improvement in crane performance from 18 to 28 Gross Crane Moves per Hour (GCH)
- Doubling of Ship Working Hours (SWH) from 60 to 120
- Reduced logistics costs and improved service reliability
- Enhanced market access and the potential to attract new cargo volumes
These improvements are aligned with national priorities to restore South Africa’s global competitiveness, rebuild trust in the logistics system, and support stronger export-led growth.
Leadership perspectives
Transnet Group Chief Executive Michelle Phillips emphasised the importance of the partnership for South Africa’s competitiveness, noting that recent investments in equipment had already uplifted performance and that the ICTSI partnership would “propel this crucial terminal to its full potential.”
She added that private-sector participation remains central to Transnet’s strategy to modernise and expand its assets, improve efficiencies, and transform South African ports into world-class hubs.
ICTSI Senior Vice President Hans-Ole Madsen described Pier 2 as a “strategic asset for South Africa, critical to trade, jobs, and economic growth” and reaffirmed ICTSI’s commitment to revitalising the terminal and unlocking new opportunities for the region.
A welcome boost for the trade ecosystem
At the SA Trade Desk, we welcome this long-awaited partnership and the early signs of progress emerging from Operation Vulindlela’s logistics reform programme.
South Africa simply cannot grow without an efficient, predictable and competitive logistics system — and partnerships with best-of-breed global operators are essential to accelerating the turnaround.
With ICTSI’s global expertise and a renewed focus on operational excellence, DCT Pier 2 is positioned to become a high-performance gateway capable of supporting South Africa’s trade ambitions and strengthening the wider regional economy.
We look forward to monitoring the impact of this partnership and to seeing continued improvements in port productivity and trade facilitation across the country.
