Manila-based port operator International Container Terminal Services Inc (ICTSI) has formally signed a 25-year partnership agreement to run and upgrade Durban Container Terminal (DCT) Pier 2, South Africa’s busiest container facility.

The contract sets in motion a long-planned joint venture between Transnet and ICTSI, with operations to shift to the new structure — Newco — on January 1, 2026. Transnet will hold the majority stake, while ICTSI will take charge of day-to-day operations and performance improvements.

ICTSI’s appointment follows a competitive tender in July 2023, where it emerged ahead of Maersk’s APM Terminals. That process became entangled in a legal challenge when APMT took the matter to court in April 2024, arguing that ICTSI relied on market capitalisation instead of balance-sheet equity to meet solvency rules — a move the runner-up said skewed the process.

The dispute stalled Transnet’s wider plan to bring private capital into a port system struggling with congestion, equipment failures and falling productivity. In October 2025, a South African court dismissed APMT’s challenge, clearing the last hurdle for the deal to proceed.

With the legal dust settled, ICTSI — led by Enrique Razon — is preparing a R11bn ($638m) investment to turn around Pier 2, which handles over 70% of Durban’s container throughput and nearly half of South Africa’s total container volumes.

The partnership marks a key milestone in South Africa’s port reform push, Transnet said, adding that it aims to use private sector participation to bring in new skills, equipment and capital to reverse years of declining performance.

Planned upgrades at Pier 2 include new handling equipment and digital systems designed to lift capacity from 2m teu to 2.8m teu. Productivity gains are central to the programme, with crane moves expected to rise from 18 to 28 per hour and ship working hours targeted to double from 60 to 120. The improvements are expected to cut logistics costs and stabilise supply chains — perennial concerns for exporters and importers using Durban.

Transnet chief executive Michelle Phillips said Pier 2 has already shown improvement through recent investment, and the ICTSI partnership is intended to accelerate that momentum. “Private sector participation is an important element of our strategy to modernise, expand and improve our key assets,” she said. “This is consistent with our approach to enhance efficiency and growth through strategic partnerships.”

Hans-Ole Madsen, ICTSI senior vice-president, called the deal a “shared commitment to revitalizing South Africa’s maritime infrastructure,” adding that Pier 2 is essential for regional trade and jobs.