South Africa Completes Deal for Privatization of Durban Container Terminal
South Africa’s Transnet officially signed the partnership agreement with International Container Terminal Services (ICTSI) for the privatization and upgrade at the Durban port. It comes more than two years after the deal was first announced and after courts rejected a challenge from Maersk’s APM Terminals.
Durban, which accounts for nearly half of South Africa’s container volume, has been plagued with problems and consistently ranked at the bottom of the league tables issued by the World Bank and others. Congestion and delays in handling containers have plagued the port and become a hindrance to trade.
South African President Cyril Ramaphosa called for a “new era” for South Africa’s ports and promised major reforms. Saying that the government would drive the revitalization to make the ports an engine of economic growth, Transnet was ordered to improve its management and operations, as well as launch an investment program. The government determined to bring in international partners to help drive the efforts.
ICTSI was selected in July 2023 after a long tender process. Almost immediately, APM, which had been placed second, complained about the administration of the tender. It contended that ICTSI had failed to meet the solvency measures in the tender and ultimately took its complaint to the courts in 2024. South Africa’s High Court dismissed the case in October 2025.
Transnet signed the 25-year partnership agreement at a ceremony in Durban on December 10. Under the terms, Durban Container Terminal Pier 2 will be held in a new partnership, 51 percent owned by Transnet and 49 percent by ICTSI. The terminal operator based in the Philippines is responsible for the operations and overseeing the investments and improvements.
“Through our deliberate and expansive investment in new equipment across our terminals, the performance of DCT Pier 2 has been on an upward trajectory,” said Transnet Group Chief Executive Michelle Phillips during the ceremony. “We expect that our partnership with ICTSI will further propel this crucial terminal to its full potential.”
The plan calls for approximately $650 million of investment into the port. It will include new equipment and advanced technology. It is expected to enhance terminal productivity and increase throughput, ultimately improving the terminal’s operational efficiency and container supply chains.
They are forecasting that DCT Pier 2 will increase capacity from 2 million to 2.8 million TEU. Gross crane moves per hour are also forecast to improve from 18 to 28, while ship working hours will increase from 60 to 120. They forecast that these improvements will also lower logistics costs and improve service quality.
ICTSI senior vice president Hans-Ole Madsen said it was the start of a shared commitment to revitalizing South Africa’s maritime infrastructure. The partnership officially launches on January 1.
Brazilian Court Agrees to Bar Maersk and Others in Santos Terminal Auction
A Brazilian court handed down a recommendation that sides with the country’s port administrator concerning the structure of the auction for the next port terminal concession in Santos. The court agreed with the authority that has proposed a structure that would bar the current operators of terminals in the port from bidding in the first round of the auction.
The Federal Court of Accounts in Brazil decided not to overrule Antaq (National Agency for Waterway Transport) in its proposal for the auction for a concession to operate a new terminal in Santos. The proposal calls for a two-stage auction process. The first phase will be limited to operators that do not currently have concessions in Santos. It would proceed to a second phase, which would be opened up to all the companies, only if the first round failed to receive a satisfactory proposal.
Antaq says its goal is to spur competition in the port and increase the total investments. Santos is the largest port in South America, but it is outgrowing its container capacity, which could be maxed by 2028. The auction is expected to be the largest in Brazil’s ports, and it will result in the largest container terminal in the country.
The current port operators, including Maersk’s APM Terminals, MSC’s TiL, CMA CGM, and DP World, all have already worked to expand their operations. They, however, have complained about the proposed structure for the sale, which would prevent any of them from bidding. Experts believe it is unlikely that the auction would ever reach a second round during which the four large companies could enter proposals. Maersk led the opposition, filing the legal complaint in June.
In a vote of six to three, the panel found that “simply disagreeing with the regulatory merit does not constitute illegality.” They agreed with Antaq’s proposal and encouraged the regulator to go further in the requirements. They said the port is currently highly vertically integrated, with the shipping companies controlling the terminals.
Maersk, however, argues that consolidation would benefit transshipments and the port’s operations. It contends that excluding the current operators would “significantly reduce the project’s potential.” Maersk and MSC already share a terminal operation and CMA CGM in 2024 purchased the largest operator.
Antaq expects the winning bidder will invest between $1 and $2 billion in the first phase of the development of the Tecon Santos 10 terminal with a total 25-year concession. The project is expected to increase the port’s container capacity by 50 percent. Among the other elements will be a requirement for an internal railway yard that will have a daily throughput capacity of at least 900 TEU.
Large international companies are all reportedly preparing to place bids. China’s COSCO Shipping is expected to be one of the bidders, and it has been reported that HMM might place a bid as it seeks to expand its terminal operations. The Philippines' ICTSI has already said it looks forward to bidding, and PSA is likely to enter. Local companies that operate smaller terminals in Brazil’s other ports are also likely to enter the bidding.
The expectation is that Antaq will move to launch the auction in the first quarter of 2026. However, it is also likely that Maersk or others will file litigation seeking to block the auction structure.
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