Filipino billionaire Enrique Razon seals 25-year port deal in South Africa

South Africa’s state-owned freight company Transnet has signed a 25-year concession agreement with International Container Terminal Services Inc., handing the Filipino group operating control of the busiest container terminal in Durban.

The long-anticipated deal gives ICTSI, led by billionaire Enrique Razon, a stake and operating rights at Durban Container Terminal Pier 2, the main hub for more than 40% of South Africa’s container traffic. The port is a critical artery for the country’s exports and imports but has become a symbol of chronic congestion and inefficiency.

Transnet has billed the agreement as South Africa’s first major port concession, part of a broader effort to bring private capital and expertise into aging logistics assets without fully privatizing them. Years of underinvestment, equipment failures and vessel backlogs have drawn heavy criticism from miners, manufacturers and agricultural exporters that rely on predictable shipping schedules.

Under the concession, ICTSI is expected to invest billions of rand over the life of the contract in cranes, yard equipment, systems and training. A special-purpose company will run Pier 2, with Transnet holding the majority stake while ICTSI manages day-to-day operations and performance targets.

Operations under the new structure are set to start early next year, subject to remaining conditions being met. The signing caps a process that began when ICTSI was named preferred bidder in 2023 and then faced court challenges and pushback over the role of private players in strategic infrastructure.

Transnet Group Chief Executive Michelle Phillips said at the signing ceremony in Durban that the partnership is central to the utility’s turnaround plan and to restoring confidence in South Africa’s logistics network. She framed the deal as a step toward “world-class standards” after international rankings repeatedly placed the country’s ports among the worst performers.

Durban’s port has struggled with ship queues stretching for days, low crane productivity and frequent breakdowns, all of which have undermined South Africa’s export competitiveness and added costs for businesses.

For ICTSI, which operates container terminals across Latin America, Europe, Asia and the Middle East, the Durban concession offers a strategic foothold on one of Africa’s most important trade corridors. For Transnet and the government, it will serve as a test case of whether carefully designed public-private partnerships can revive failing state infrastructure without triggering a broader sell-off.