Durban: Transnet has received the go-ahead to continue with its plans to upgrade the Durban Container Terminal (DCT) Pier 2, following the KwaZulu-Natal High Court’s decision to dismiss an application challenging the selection of an equity partner for the project. This ruling enables Transnet to advance its modernization and expansion efforts at the terminal.
According to South African Government News Agency, the court’s decision affirms the integrity of Transnet’s procurement processes. Transnet Group Chief Executive Michelle Phillips emphasized that the ruling eliminates a significant obstacle, allowing the company to focus on executing its plan to enhance DCT Pier 2. The project involves a 25-year joint venture with International Container Terminal Services, Inc (ICTSI), selected in July 2023 as the preferred bidder. Due diligence confirmed ICTSI’s financial viability for the upgrade.
Pier 2 is the largest container terminal within Transnet, handling 72% of the Port of Durban’s throughput and 46% of South Africa’s container volumes, making it a crucial trade gateway. Transnet has assured that a rigorous procurement and due diligence process was followed, confirming ICTSI’s financial resources for the transaction.
According to Transnet, the involvement of a private sector partner is expected to boost productivity and increase throughput at DCT Pier 2. This partnership aims to enhance Transnet’s operations, container supply chains, and South Africa’s economic competitiveness. The Port of Durban holds strategic importance as it is the country’s main cargo and container port.
Phillips highlighted the importance of expediting the transaction’s implementation to transform the ports into world-class hubs with advanced equipment. She expressed regret over the delays caused by the legal challenge but remained hopeful that such incidents would not hinder future private sector participation transactions.
Transnet reiterated its commitment to a fair and transparent tender process, conducted in line with South Africa’s public procurement regulations. The transaction represents a significant step in engaging the private sector to introduce global expertise and capital, thereby improving efficiencies across Transnet’s terminals.