Enrique K. Razon-led International Container Terminal Services Inc. (ICTSI) reported that the formal management transition of Durban Container Terminal Pier Two (DCT2) at Port of Durban commenced on Jan. 1, 2026.

In a disclosure to the Philippine Stock Exchange (PSE), ICTSI said it had signed an agreement to be the strategic partner for the operation and development of DCT2 at the South African port.

Transnet SOC Ltd. (Transnet), a South African government state-owned company (SOC) that owns South Africa’s railway, ports, and pipelines infrastructure, has signed an agreement with ICTSI for a 25-year joint venture (JV) to operate and further develop its flagship DCT2.

DCT2 is Transnet’s biggest container terminal, handling over 70 percent of Port of Durban’s throughput and approximately 46 percent of South Africa’s port traffic.

The terminal has 1,760 meters of operational quay length and 120 hectares (ha) of container storage and backup area.

“The landmark agreement marks a pivotal moment in [the South African] government’s economic reforms agenda and Transnet’s strategy to crowd in the private sector into selective and strategically identified areas of the business,” said ICTSI.

It is expected to enhance terminal productivity and increase throughput, ultimately improving the organization’s operational efficiency and container supply chains.

Under the agreement, Transnet holds a majority shareholding in a new special purpose vehicle, Newco, while ICTSI will be responsible for the operation of the terminal.

In July 2023, Transnet selected ICTSI as the preferred bidder for the transaction following a rigorous and transparent procurement process.

Through the introduction of new equipment and advanced technology, DCT2 is expected to increase its capacity from two million to 2.8 million twenty-foot equivalent units (TEUs) and improve gross crane moves per hour (GCH) from 18 to 28, as well as ship working hours (SWH) from 60 to 120.

These improvements are envisaged to reduce logistics costs and improve service quality, thus broadening market access and attracting new volumes.

“Through our deliberate and expansive investment in new equipment across our terminals, the performance of DCT2 has been on an upwards trajectory. We expect that our partnership with ICTSI will further propel this crucial terminal to its full potential,” said Transnet Group Chief Executive Officer (CEO) Michelle Phillips.

She added that, “Private-sector participation (PSP) transactions are an important element of our strategy to modernize, expand, and improve our key assets. It is also a big step in our efforts to improve efficiencies across our terminals and transform our ports into world-class hubs.

“This is consistent with our approach to enhance efficiency and growth through strategic partnerships. Private sector participation in ports has the potential to positively influence efficiencies, export processes, and global competitiveness.”

ICTSI Senior Vice President Hans-Ole Madsen said, “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.”

“Pier Two 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 DCT2 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,” he noted.