South Africas state-owned freight company Transnet has signed a 25-year concession agreement with International Container Terminal Services Inc., handing the Filipino group operating control of the busiest container terminal in Durban.
The long-anticipated deal gives ICTSI, led by billionaire Enrique Razon, a stake and operating rights at Durban Container Terminal Pier 2, the main hub for more than 40 of South Africas container traffic. The port is a critical artery for the countrys exports and imports but has become a symbol of chronic congestion and inefficiency.
Transnet has billed the agreement as South Africas first major port concession, part of a broader effort to bring private capital and expertise into aging logistics assets without fully privatizing them. Years of underinvestment, equipment failures and vessel backlogs have drawn heavy criticism from miners, manufacturers and agricultural exporters that rely on predictable shipping schedules.
