Durban’s port partnership can unlock South Africa’s export growth
After more than two years of delay caused by legal challenges from an unsuccessful bidder, International Container Terminal Services Inc. (ICTSI) is now ready to partner with Transnet to deliver the service improvements that South Africa’s port system — and wider economy — urgently need.
Durban port: a key player in trade infrastructure
Durban’s port handles over 60% of South Africa’s containerised freight, directly influencing the cost of doing business, the competitiveness of exporters, and the pace of national growth.
For this reason, the South African government and Transnet have, in line with international best practice, pursued carefully structured partnerships with the private sector to modernise national logistics assets. These partnerships are designed to deploy technology anchored on global best practices, unlock new capital and drive operational efficiency, all while preserving public ownership of critical infrastructure.
The DCT2 concession and investment plans
The 25-year concession awarded to ICTSI in July 2023 represents a major step in achieving that vision. The partnership will expand the terminal’s capacity and strengthen Durban’s position as a container hub.
ICTSI has committed to a multi-billion-rand investment programme valued at roughly R12bn over the life of the concession, focused on modern equipment, systems upgrades, and workforce development.
The High Court judgment dismissed the challenge brought by the losing bidder, confirming that ICTSI was the highest-scoring participant and the best-qualified partner to meet Transnet’s technical, financial, and developmental requirements.
The ruling also affirmed the transparency and integrity of Transnet’s procurement process and acknowledged ICTSI’s openness in demonstrating its financial capacity.
As the judgment noted, awarding the concession to a lesser-ranked bidder would have been contrary to the purpose of the tender and the financial interests of the state-owned entity.
This outcome is not only a legal vindication; it is also a vote of confidence in South Africa’s ability to execute complex partnerships with credibility and fairness. The process has shown that world-class private investors can engage transparently with the public sector to help unlock national growth.
Global experience and regional impact
Transnet deserves recognition for the work it has already done this year to stabilise operations at its container terminals and to drive incremental system improvements. ICTSI will continue work to implement improvements at DCT2 in collaboration with Transnet.
ICTSI operates 33 terminals across 19 countries, including some of the world’s most complex and dynamic markets such as China, Brazil, Indonesia, the Philippines, Argentina, Australia, Mexico, and the Democratic Republic of Congo. Across these locations, the company has demonstrated how private-sector expertise can revitalise strategic assets, reduce logistics bottlenecks, and stimulate economic growth.
In Mexico, for example, ICTSI invested more than $300m to expand and modernise its terminal at the Port of Manzanillo — the country’s largest maritime gateway. This included deploying the largest quay cranes in the Americas and upgrading infrastructure to accommodate megaships. As a result, the terminal increased throughput by 14 % in 2024, handling 1.5 million TEUs (standard containers) and contributing meaningfully to Mexico’s broader economic development.
Another example is the Port of Matadi in the Democratic Republic of the Congo (DRC). Before ICTSI entered into a partnership with the DRC government, the port faced years of congestion, inefficiency, and ageing infrastructure.
Situated along the Congo River, Matadi is the country’s main gateway for both containerised and general cargo. Within two years of the public-private partnership, the port was transformed: a modern terminal was constructed, vessel turnaround times were reduced, and trade routes into Kinshasa and beyond were revitalised. It now ranks as one of the top ports in Africa.
What was once a major bottleneck in the DRC’s logistics network has become a symbol of how well-managed partnerships can deliver meaningful change — even under difficult circumstances.
The lesson from Mexico, the DRC and elsewhere is clear: when the private sector and the state collaborate around a shared development vision, the results are transformative. Private partners bring capital investment, specialist know-how, transparency, and operational discipline that complement public oversight and policy direction.
Opportunities for South Africa
For South Africa, the DCT2 partnership offers a similar opportunity. A modernised, high-performing container terminal will shorten vessel turnaround times, improve reliability across the supply chain, and reduce logistics costs for exporters and importers alike.
By introducing systems and technology that align with global best practice, the efficiencies gained will enable South African products to reach global markets faster and more competitively, while supporting job creation in manufacturing, logistics, and port services.
The project is expected to create employment opportunities, support small-business participation, and contribute to Durban’s maritime economy. Efficient, predictable port operations will also enhance investor confidence across the economy, reinforcing the perception of South Africa as a reliable trade partner.
The court’s decision marks the end of a lengthy legal chapter, but the real work now begins — delivering on the promise of a world-class container terminal at Durban. ICTSI will apply its experience and technology to the partnership with Transnet. Working hand-in-hand with Transnet, labour, and local industry, they aim to make DCT2 a benchmark for efficiency and collaboration in Africa.
By unlocking the full potential of DCT2, South Africa can strengthen its trade competitiveness, boost economic growth, and reaffirm Durban’s role as a gateway for the region.
The partnership between Transnet and ICTSI is more than a commercial agreement — it is an opportunity to demonstrate how public and private sectors, acting together, can build the infrastructure foundation for a more prosperous, connected, and resilient South Africa.