International Container Terminal Services Inc. (ICTSI) has signed a 25-year partnership agreement with Transnet SOC Ltd. (Transnet) to operate the strategic Durban Container Terminal (DCT) Pier 2 in South Africa.
Effective Jan. 1, 2026, the joint venture between Transnet Port Terminals (TPT) and ICTSI will manage the terminal’s upgrade and development. The agreement is a cornerstone of the government’s economic reform agenda and Transnet’s strategy to integrate the private sector into key business areas.
It is expected to enhance terminal productivity and increase throughput, ultimately improving the organization’s operational efficiency and container supply chains.
Under the terms, Transnet retains a majority shareholding in the new special purpose vehicle (Newco), while globally-renowned operator ICTSI—selected as the preferred bidder in July 2023—will assume responsibility for the terminal’s operations, leveraging its successful track record in improving port performance worldwide.
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.
“Through our deliberate and expansive investment in new equipment across our terminals, the performance of DCT Pier 2 has been on an upward 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 modernize, 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,” Transnet Group chief executive Michelle Phillips said.
“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,” she added.
Hans-Ole Madsen, ICTSI senior vice president, said the partnership marks a shared commitment to revitalizing 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,” he added.
Headquartered and established in 1988 in Manila, ICTSI’s portfolio of terminals and projects are located in developed and emerging market economies in the Asia Pacific, the Americas, and Europe, the Middle East and Africa.
