After 20 years of trying, the South African government has taken its first step towards port privatisation, a hugely contentious issue in the country, but one made more pressing with the country\u2019s slide down the rankings when it comes to port productivity. \u00a0<\/p>\n
State-run Transnet, which oversees the country\u2019s ports, has selected Manila-headquartered International Container Terminal Services (ICTSI) as the preferred bidder for a joint venture to develop and upgrade the flagship Durban Container Terminal Pier 2 so that it can handle 2.8m teu a year, up from the current 2m teu.<\/p>\n
Over a 25-year term, ICTSI will partner with Transnet Port Terminals (TPT) to develop and upgrade Transnet\u2019s biggest container terminal, handling 72% of the Port of Durban\u2019s throughput and 46% of South Africa\u2019s container traffic.<\/p>\n
\u201cPrivate sector participation in Pier 2 is a key catalyst for repositioning the Port of Durban as a container hub port,\u201d said Transnet Group CEO Portia Derby. \u201cWe are delighted to have a global player of ICTSI\u2019s standing on board to drive this process.\u201d<\/p>\n
Transnet will have majority ownership of 50% plus one share on the new joint venture. Many other terminal operators made bids for the Durban concession with the government now hopeful further joint ventures can be inked to boost port productivity.<\/p>\n
\u201cThe partnership in Pier 2 is a major step forward for our programme to bring in global expertise to improve efficiencies at our terminals, and bodes well for our ongoing plans to crowd in the private sector in areas identified for growth,\u201d said Derby.<\/p>\n
Durban was Africa\u2019s busiest container port for decades but has now slipped into third place behind Tangiers in Morocco and Port Said in Egypt.<\/p>\n