Transnet’s board has given the green light for the finalization of the contract to operate Durban Container Terminal 2, which will be awarded to the preferred bidder, Philippine terminal operator ICTSI.
The completion of the financial close is pending other non-financial processes, Transnet’s chairperson of the Board of Directors, Andile Sangqu, announced on Friday.
ICTSI was selected as the preferred bidder in July 2023, and after completing financial due diligence last month, Transnet confirmed that ICTSI has the financial capability to conclude the transaction.
The partnership between ICTSI and Transnet Port Terminals (TPT) in a 25-year joint venture aims to develop and upgrade the terminal, the largest container terminal operated by Transnet, handling a significant portion of Port of Durban throughput and South Africa’s traffic.
Sangqu emphasized that TPT will continue to fulfill its obligations under its existing agreements, and there will be no retrenchments as a result of the partnership.
However, the contract award is subject to several outstanding legal and regulatory matters, including approval from the minister of finance, creation of a new company for the joint venture, and approval from Transnet National Ports Authority.
Additionally, trade unions must sign off on the agreement, and final negotiations on project agreements’ terms and conditions are required.
Transnet will extend the bid validity period to accommodate the partner selection process, pending the consent of all bidders.
