South Africa’s state-owned port and logistics operator, Transnet SOC Ltd., has signed a major concession agreement with a company led by Filipino billionaire Enrique Razon to expand the main terminal at Durban.
South Africa’s state-owned port and logistics operator, Transnet SOC Ltd., has signed a major concession agreement with a company led by Filipino billionaire Enrique Razon to expand the main terminal at Durban, the continent’s busiest container hub.
The deal marks the first port-privatisation agreement in South Africa and signals a push to improve efficiency at the country’s struggling ports, according to Bloomberg.
Razon’s firm to invest 11 billion rand
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The agreement follows a similar move two years ago, when Transnet awarded International Container Terminal Services Inc. the right to acquire nearly half of Container Terminal Pier 2 and manage it for 25 years.
Under the new arrangement, Razon’s firm will invest roughly 11 billion rand ($647 million) to upgrade infrastructure and enhance operations at the terminal.
“This ground-breaking partnership is a step forward in Transet’s ambition to be among the world’s best ports,” Transnet Chief Executive Officer Michelle Phillips said.
Durban’s Pier 2 is the heart of South Africa’s container traffic, handling about 70% of the port’s total throughput and more than 40% of the nation’s container volumes, according to Phillips.
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The World Bank ranks South Africa’s ports among the least efficient globally, and inefficiencies have long been a drag on trade, increasing costs for importers and exporters alike.
The concession is part of a broader effort by Transnet to revitalise its port operations, attract foreign investment, and implement international best practices.
Analysts say private-sector involvement could accelerate modernisation, improve turnaround times, and introduce advanced technologies that state-run operations have struggled to deploy.
