South Africa Completes Deal for Privatization of Durban Container Terminal

South Africa’s Transnet officially signed the partnership agreement with International Container Terminal Services (ICTSI) for the privatization and upgrade at the Durban port. It comes more than two years after the deal was first announced and after courts rejected a challenge from Maersk’s APM Terminals.

Durban, which accounts for nearly half of South Africa’s container volume, has been plagued with problems and consistently ranked at the bottom of the league tables issued by the World Bank and others. Congestion and delays in handling containers have plagued the port and become a hindrance to trade.

South African President Cyril Ramaphosa called for a “new era” for South Africa’s ports and promised major reforms. Saying that the government would drive the revitalization to make the ports an engine of economic growth, Transnet was ordered to improve its management and operations, as well as launch an investment program. The government determined to bring in international partners to help drive the efforts.

ICTSI was selected in July 2023 after a long tender process. Almost immediately, APM, which had been placed second, complained about the administration of the tender. It contended that ICTSI had failed to meet the solvency measures in the tender and ultimately took its complaint to the courts in 2024. South Africa’s High Court dismissed the case in October 2025.

Transnet signed the 25-year partnership agreement at a ceremony in Durban on December 10. Under the terms, Durban Container Terminal Pier 2 will be held in a new partnership, 51 percent owned by Transnet and 49 percent by ICTSI. The terminal operator based in the Philippines is responsible for the operations and overseeing the investments and improvements.

“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.”

The plan calls for approximately $650 million of investment into the port. It will include new equipment and advanced technology. It is expected to enhance terminal productivity and increase throughput, ultimately improving the terminal’s operational efficiency and container supply chains.

They are forecasting that DCT Pier 2 will increase capacity from 2 million to 2.8 million TEU. Gross crane moves per hour are also forecast to improve from 18 to 28, while ship working hours will increase from 60 to 120. They forecast that these improvements will also lower logistics costs and improve service quality.

ICTSI senior vice president Hans-Ole Madsen said it was the start of a shared commitment to revitalizing South Africa’s maritime infrastructure. The partnership officially launches on January 1.