Transnet announces DCT Pier 2 bidder

DCT Pier 2 is Transnet’s biggest container terminal, handling 72% of the Port of Durban’s throughput and 46% of South Africa’s port traffic.

Transnet National Ports Authority aims to increase current capacity in the Port of Durban from 3.3 million teu to 11.4 million teu.

“The 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,” said Transnet chief executive, Portia Derby.

Transnet hopes the partnership with ICTSI will increase throughput volumes and help the terminal access global shipping line call routes.

This will not only improve the logistics associated with servicing South African ports, says Transnet, but will also help stimulate growth in exports and imports.

Transnet received 18 responses to its initial  request for interest call in August 2021, nine of them from global terminal operators. From this, ten bids were shortlisted of which six submitted proposals.

Key elements of the transaction are:

• A new company will be formed to manage the operations at DCT Pier 2, in which Transnet will have majority ownership of 50% plus one share.
• The term of the transaction is 25 years, with an option to extend to a maximum of 30 years in the event that berth deepening of the North Quay at Pier 2 is delayed.
• Non-current assets will be transferred into the new company together with customer and supplier contracts. The new company is required to achieve a minimum level 4 BBEE contribution status.
• The terminal operating licence and lease will be subcontracted to the new company, after seeking approval from Transnet National Ports Authority.
• DCT Pier 2 employees will transfer to the new company.

The finalisation of the process follows government approval and Transnet says a way forward on the Ngqura Container Terminal process will be outlined in due course.Tran