Seatrade Maritime: ICTSI signs 25 year-partnership to operate Durban terminal

Manila-based International Container Terminal Services, Inc (ICTSI) and Transnet SOC Ltd (Transnet) have officially signed a 25-year partnership agreement for the strategic Durban Container Terminal (DCT) Pier 2.

Durban Container Terminal Pier 2 is South Africa’s busiest container terminal. The partnership officially launches on January 1.

The signature marks the end of a legal battle started in July 2023 when ICTSI won the international tender ahead of Maersk’s APM Terminals, which contested the results and began legal proceedings. In October this year, a South African court dismissed AP Moller-Maersk‘s suit, allowing the concession to proceed.

The deal is expected to enhance terminal productivity and increase throughput, ultimately improving the DCT Pier 2’s operational efficiency and container supply chains. Transnet holds a majority shareholding in a new special purpose vehicle, Newco, while ICTSI will be responsible for operation of the terminal.

Durban accounts for nearly half of South Africa’s container volume.

Through the introduction of new equipment and advanced technology, DCT Pier 2 is expected to increase its capacity from 2m to 2.8m teu, improve Gross Crane Moves per Hour (GCH) from 18 to 28, and Ship Working Hour (SWH) from 60 to 120. These improvements will be thre result of $650m of investment into the port, and are predicted to reduce logistics costs and improve service quality, attracting new volumes to the terminal.

“Through our deliberate and expansive investment in new equipment across our terminals, the performance of DCT Pier 2 has been on an upward trajectory,” said Transnet Group chief executive Michelle Phillips during the ceremony. “We expect that our partnership with ICTSI will further propel this crucial terminal to its full potential.”

 ICTSI 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.