International Container Terminal Services Inc. (ICTSI) has agreed to a 25-year joint venture with Transnet Port Terminals (TPT) to build and modernise Durban Container Terminal (DCT) Pier 2.
DCT Pier 2 is Transnet’s biggest container terminal, handling 72 per cent of the Port of Durban’s throughput and 46 per cent of South Africa’s port traffic.
Transnet Group CEO, Portia Derby, said: “Private sector participation in Pier 2 is a key catalyst for repositioning the Port of Durban as a container hub port. We are delighted to have a global player of ICTSI’s standing on board to drive this process.”
The procedure was completed after government clearances under the Public Finance Management Act (PFMA).
The partnership with ICTSI aims to help in repositioning the Durban Port Terminal for best practice performance, increasing volume throughput, and aiding the terminal in providing operational and commercial assistance to access global shipping line call routes.
This will not only enhance the logistics of serving South African ports, but it will also play an important role in promoting exports and imports.
This is a growth strategy for Transnet where Pier 2’s current capacity of 2 million TEU is planned to increase to 2.8 million TEU.
This is aligned with plans by Transnet National Ports Authority (TNPA) to increase the current container capacity in the Port of Durban from 3.3 million TEU to an eventual envisaged capacity of 11.4 million TEU.
“The partnership in Pier 2 is a major step forward for our programme to bring in global expertise to improve efficiencies at our terminals, and bodies well for our ongoing plans to crowd in the private sector in areas identified for growth,” added Derby.
A total of 18 responses were received to Transnet’s initial call for request for interest in August 2021, nine of them from global terminal operators.
Following this, a total of 10 bids were shortlisted in response to a request for qualifications. Of the shortlisted respondents, six bidders submitted proposals.