ICTSI wins deal to operate South Africa’s biggest port
International Container Terminal Services Inc. (ICTSI) won a 25-year contract to operate and develop a South African terminal handling nearly half of the country’s port traffic.
In a disclosure on Tuesday, the Enrique Razon Jr.-led port operator said it was chosen as the preferred bidder by Transnet SOC Ltd.—a South African government state-owned company—to manage Durban Container Terminal (DCT) Pier 2 in the Port of Durban. ICTSI presented the best bid among 10 parties vying for the contract. DCT 2 Pier is the biggest container terminal of Transnet.
It handles 72 percent of the Port of Durban’s throughput and 46 percent of South Africa’s port traffic.
“Final award is subject to completion of legal agreements between Transnet and ICTSI,” the listed company said.
Inquirer reached out to ICTSI to determine the transaction value but has yet to receive a response.
Under the deal, ICTSI is forming a joint venture with Transnet Port Terminals, with the latter owning majority ownership of 50 percent plus one share. The new company plans to increase Pier 2’s capacity from 2 million twenty-foot equivalent units (TEUs) to 2.9 million TEUs.
“The term of transaction is 25 years, with an option to extend a maximum of 30 years in the event that berth deepening of the North Quay at Pier 2 is delayed,” Transnet said.
The South African company assured that Pier 2 employees will be absorbed by the joint venture.
ICTSI as catalyst
Transnet Group CEO Portia Derby said that “private sector participation in Pier 2 is a key catalyst for repositioning the Port of Durban as a container hub port.”
“The partnership in Pier 2 is a major step forward for our program to bring in global expertise to improve efficiencies at our terminals and bodes well for our ongoing plans to crown in the private sector in areas identified for growth,” Derby added.
“It is an opportunity in a regionally and globally important gateway port, and we believe strongly in the country’s potential,” said Christian Gonzalez, ICTSI executive vice president and global corporate head.
Recently, ICTSI launched a new route—called South China Vietnam Philippines service—linking Subic to rest of Asia, giving northern and Central Luzon traders more options to ship their goods.
The port operator also held a groundbreaking ceremony in May for the construction of Manila International Container Terminal’s eighth berth.
ICTSI is ramping up operations and investments amid a rosy outlook for the shipping sector. The Philippine Ports Authority has projected a 7-percent to 8-percent growth in both cargo throughput and container traffic this year. INQ
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