Transnet And Ictsi Seal Partnership For Dct Pier 2
Transnet SOC Ltd (Transnet) and the world’s largest independent terminal operator, International Container Terminal Services, Inc (ICTSI) today officially signed a 25-year partnership agreement for the strategic Durban Container Terminal (DCT) Pier 2. The landmark agreement marks a pivotal moment in Government’s economic reforms agenda and Transnet’s strategy to crowd in the private sector into selective and strategically identified areas of the business. It is expected to enhance terminal productivity and increase throughput, ultimately improving the organisation’s operational efficiency and container supply chains. It 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 1 January 2026. In terms of the agreement, Transnet holds a majority shareholding in a new special purpose vehicle, Newco, while ICTSI will be responsible for operation of the terminal. ICTSI has an excellent track record across the globe in improving the performance, service and efficiency of ports. 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 twenty-foot equivalent units (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 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.”
