The agreement that the state-owned Transnet finalized this morning with the private company International Container Terminal Services (ICTSI) could represent the first step towards a possible privatization of South African ports
ICTSI has been chosen as an ‘equity partner’ for the 25-year long Durban Container Terminal management lease. DCT (pier 2) is South Africa’s largest terminal. 46% of the country’s goods transit through it.
Portia Derby, Transnet Group’s CEO said private sector involvement in Pier 2 was a key catalyst for repositioning the Port of Durban as a container hub port and that Transnet was delighted to have a global player of ICTSI’s calibre on board to lead this process.
The private sector will contribute to upgrading the terminal, in view of significantly boosting its capacity from the current 2 million TEUs to 2.8 million in the future.
The Terminal will be operated for 25 years by a newco led by Transnet with a 51% stake.
