South Africa’s state-owned logistics company, Transnet, has entered a 25-year concession agreement with International Container Terminal Services Inc. (ICTSI), a Philippines-based terminal operator, to upgrade the Durban Container Terminal Pier 2, which accounts for over 40% of the country’s container traffic and is its busiest terminal. The partnership aims to improve capacity and efficiency through advanced technology and equipment, with ICTSI set to start operations in January next year.
Transnet CEO Michelle Phillips highlighted the significance of collaborating with private firms as part of a broader modernization strategy. Both organizations will create a special purpose vehicle for this partnership, with Transnet maintaining majority ownership. The agreement had previously faced delays due to legal challenges concerning the partner selection process.
This initiative aligns with Transnet’s ongoing investments in modernizing its port infrastructure. In October 2025, the company introduced four new ship-to-shore cranes at the Durban Container Terminal Pier 2, valued at R967 million, to enhance operational efficiency by replacing an outdated fleet.
Furthermore, in November 2025, Transnet Port Terminals ordered 16 hybrid straddle carriers from Kalmar, set for deployment at Cape Town and Port Elizabeth container terminals in 2026. These advances demonstrate Transnet’s commitment to enhancing its infrastructure and service offerings through strategic partnerships and investments, ultimately aiming to bolster South Africa’s logistics capabilities and productivity in the port sector.
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