Transnet cements partnership with ICTSI for Durban's Pier 2 to boost maritime infrastructure

TRANSNET and International Container Terminal Services Inc. (ICTSI), the world’s largest independent terminal operator, on Wednesday formally signed a 25-year partnership agreement for the operation and upgrade of Durban Container Terminal (DCT) Pier 2.

- YOGASHEN PILLAY

LEFT TO RIGHT: Transnet chairman Andile Sangqu ,Jabu Mdaki Chief Executive (CE) of Transnet Port Terminals (TPT), Transnet Chief Financial Officer (CFO) Nosipho Maphumulo, Michelle Phillips Group Chief Executive Officer (CEO) of Transnet SOC Ltd, Noralyn Baja, Philippines ambassador, Hans-Ole Madsen Senior Vice President, Regional Head for Europe and Middle East and Africa of the ICTSI.

(SIBONELO NGCOBO Independent Newspapers)

The signing concludes a lengthy process that included a court challenge lodged by APM Terminals, a Maersk subsidiary, which contested the awarding of the port terminal development contract.

ICTSI’s victory in the matter in October cleared the way for the partnership to proceed.

‘Transnet described the agreement as a landmark milestone in South Africa's economic reform agenda and its strategy to attract private-sector investment into key logistics operations.

The State-owned company said ICT-SI’s involvement is expected to enhance terminal productivity, increase throughput, and strengthen the country’s container supply chains.

According to Transnet, ICTSI has a globally recognised track record for improving port efficiency and service levels. The company was selected as the preferred bidder in July 2023 after what Transnet said was a rigorous and transparent procurement process.