Global ports operator International Container Terminal Services, Inc. (ICTSI) has formally inked its 25-year joint-venture contract to operate and further develop the Durban Container Terminal Pier 2 (DCT2).
In a stock exchange report on Thursday, the company confirmed signing of the agreement with South Africa’s state-owned Transnet SOC Ltd. It said the formal management integration between Transnet and ICTSI will begin in January.
“This 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,” ICTSI’s Senior Vice President, Hans-Ole Madsen said.
“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.”
Transnet, which owns South Africa's railway, ports, and pipelines infrastructure, described DCT2 as its “biggest container terminal,” handling over 70 percent of the Port of Durban’s throughput and about 46 percent of the country’s total port traffic.
The facility spans 1,760 meters of operational quay length and 120 hectares of container storage and backup area.
In October, the High Court of South Africa dismissed a legal challenge filed by Maersk unit APM Terminals BV over the privatization of DCT2. The decision allowed ICTSI to proceed with its contract.
The High Court affirmed ICTSI’s financial capability, noting that the “solvency ratio was not the sole measure of financial qualification,” and found that APM’s petition had been filed too late.
The ruling came as the government moves to expand private-sector participation in its ports, including ongoing searches for operators for Cape Town’s liquid bulk terminal and the Port Elizabeth RoRo facility.