Africa\u2019s biggest harbour will be partly owned and operated by the Philippines\u2019 International Container Terminal Services, a first for South Africa\u2019s national ports company.<\/p>\n\n\n\n
The company, known as ICTSI, has been selected as an equity partner to run and expand Durban Container Terminal Pier 2. <\/p>\n\n\n\n
Almost three-quarters of the freight volume moved through the eastern port goes through the terminal and it accounts for 46% of South Africa\u2019s total port traffic, according to state logistics company, Transnet.<\/p>\n\n\n\n
This agreement \u201cis a key catalyst for repositioning the Port of Durban as a container hub port,\u201d Transnet said in a statement on Monday (17 July).<\/p>\n\n\n\n
South Africa is seeking to boost private participation in its ports, the poor performance of which is a drag on the economy. In a 2021 World Bank index of container port performance, Durban ranked 364th out of 370 and two other Transnet ports were in the bottom 10.<\/p>\n\n\n\n
Transnet will own a 50% plus one share in a new company that will manage the terminal for 25 years and will seek to boost its annual capacity to 2.8 million twenty-foot equivalent units, or TEUs, from two million, it said. TEUs are used to measure trade volumes at container ports.<\/p>\n\n\n\n
ICTSI, whose chairman and chief executive officer is Filipino billionaire Enrique Razon, will make an \u201cup front\u201d payment to Transnet for the stake, the South African company said in a response to queries, declining to give a figure. Razon is a major shareholder in ICTSI.<\/p>\n\n\n\n
Ultimately Transnet wants to boost Durban\u2019s total container capacity to 11.4 million TEUs from 3.3 million.<\/p>\n\n\n\n
ICTSI, which operates terminals across six continents, was one of six bidders for the contract, Transnet said. An announcement on the port of Ngqura will follow, added Transnet.<\/p>\n\n\n\n