Transnet is pleased to inform those who hold notes that it has announced that the Company is now in the selection process for an equity partner to its main terminal, Durban Container Terminal (DCT) Pier 2. Transnet has chosen the international terminal company, International Container Terminal Services Inc. (ICTSI), as the preferred bidder for the partnership of 25 years together with Transnet Port Terminals (TPT) for the purpose of developing and upgrading the terminal.
DCT Pier 2 is Transnet’s largest container terminal. It handles 72 percent of the port’s traffic as well as 46 percent of South Africa’s port transport.
“Private sector involvement for Pier 2 is a key driver for the repositioning of this Port of Durban as an international port for container traffic. We’re delighted to have a world-class player of the ICTSI standing alongside us to steer this change,” says Transnet Group CE Portia Derby.
The process’s completion comes after approval by Government as per the Public Finance Management Act (PFMA). ICTSI is an industry-leading independent, global operator and developer of both container terminals. ICTSI has its headquarters at Manila, Philippines and is listed publicly and traded through the Philippine Stock Exchange and the Over-the-Counter Markets Group in the United States. ICTSI is the biggest individual terminal owner.
The company has the operation of 34 terminals in 20 countries spread across six continents comprising four (4) within Africa. It’s ranked as the 8th largest container terminal operator worldwide, in accordance with the twenty-foot equivalent units (TEU) amount of equity (2021 Drewry’s rankings). For the fiscal year of 2021/22, ICTSI was able to handle more than 12.2 million TEUs, and earned greater than 2.2 billion dollars in net revenues through ports operations. ICTSI has 11,000 employees.
The collaboration with ICTSI will assist in the repositioning of the terminal in line with best practice efficiency, which will ensure an increase in the volume of throughput and assist the terminal by providing commercial and operational assistance to connect to global shipping line calls routes.
It will also increase the efficiency of logistics serving South African ports, but it will also play an important role in boosting imports and exports. It is part of a strategy for growth for Transnet with Pier 2’s present capacity of 2 million TEUs has been planned to grow by 2.8 million TEUs. This aligns with the plans of Transnet National Ports Authority (TNPA) 2 to expand the capacity of containers within Durban’s Port of Durban from 3.3 million TEUs, to eventually an anticipated capacity of 11,4 millions TEUs.
More information is available here:
Transnet SOC Ltd
Tel. : +27 11 308 3001
Source: The Plantations International Agroforestry Group of Companies