Transnet lines up new port investment

Transnet solicits proposals for a telescopic over-height frame at Port Elizabeth Container Terminal.

APM Terminals says the decision to challenge the selection of ICTSI for the Durban port development contract will not delay the overall construction process.

Transnet’s selection of ICTSI as a partner for the Durban Container Terminal Pier 2 faces challenges, but operational improvements are anticipated.

The South African port sector is experiencing profound, long lasting congestion that exceeds anything seen in the country in recent years. Waiting times of up to 20 days were reported at Durban in November, with about 70 vessels waiting outside the port at any one time. Cape Town recorded delays of up to 14 days, while congestion is also affecting the ports of Richards Bay and Gqeberha.

The turmoil and uncertainty at the South African parastatal Transnet continues with the CEO and CFO the latest to leave the company and the trading performance of its core rail and port divisions in disarray. South Africa’s ports are among the most expensive in the world to call at and its freight rail services among the least reliable.

ICTSI has beat out competition from eight other global terminal operators to emerge as the preferred bidder for a 25-year concession to operate DCT Pier 2 in Durban, South Africa.