In what is viewed as a major step forward for South African port development, Transnet has appointed a multinational Philippines-based port operator as an equity partner in the development of Durban’s container terminal.
The move is good news for local marine stakeholders, including manufacturers, who have long expressed concern about port inefficiencies, bottlenecks and infrastructure challenges.
In a statement Transnet CEO Portia Derby confirmed the deal with International Container Terminal Services Inc (ICTSI) to expand Pier 2 of Durban’s container terminal. ICTSI has a footprint in six continents and is one of the world’s largest container terminal operators.
According to a Business Day report Transnet will establish a special purpose vehicle to facilitate the ICTSI deal for an initial 25 years, with an option to extend the contract to 30 years. Transnet will own 50% plus one share of the SPV.
A similar partnership is envisioned for the Port of Ngqura in the Eastern Cape.
Meanwhile TNPA has finalised its national port development plan which had been circulated for public comment. The plan lays out development frameworks for all of the country’s commercial ports and is seen as a blueprint for future blue economy expansion.
