ICTSI bags 25-year deal to run South African port

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December 12, 2025 | 12:00am

MANILA, Philippines — Port tycoon Enrique Razon Jr. has tightened his control on international logistics with the signing of a 25-year agreement to manage and upgrade one of the biggest terminals in South Africa.

International Container Terminal Services Inc. (ICTSI) yesterday said it has inked a 25-year deal with Transnet SOC Ltd. to operate and maintain the Durban Container Terminal (DCT) Pier 2 in South Africa.

The agreement covers the further development of DCT Pier 2 to prepare it for future demand, as it facilitates more than 70 percent of cargo traffic in the Port of Durban.

DCT Pier 2 also handles 46 percent of port traffic in South Africa, making it one of the most important points for cargo entry in the country. As a whole, the terminal includes 1,760 meters of quay length and 120 hectares of container storage and backup area.

DCT Pier 2 will start its integration into ICTSI’s network by January 2026. ICTSI initially faced legal challenges in taking over the project following its win through a bidding in 2023.

In particular, the company was faced with a legal complaint from APM Terminals BV, owned by Moller-Maersk, contending its financial capability to take over DCT Pier 2.

In October, a high court in South Africa threw out the legal challenge lodged by APM Terminals, ruling that Transnet acted within its discretion in awarding the concession to ICTSI.

Transnet is a state-owned firm that owns South African infrastructure assets involved in logistics services, from ports and pipelines, to properties and railways.

The court said it has found no reason to doubt the fairness and transparency of Transnet when it issued the contract to ICTSI. The court also debunked APM Terminals’ claim that ICTSI failed to abide by the bidding requirements, particularly on solvency ratio.

The court concluded that ICTSI’s financial strength was appropriate to compete for the bidding. The company, after all, is delivering double-digit profit growth to solidify fiscal health.

ICTSI’s net income ballooned by 19 percent to $751.56 million in the nine months to September, as the company gained from the resurgence of port activities globally.

ICTSI is one of the world’s largest port builders in the 50,000 to 3.5 million twenty-foot equivalent units per year range, managing terminals in six continents.