The Southern African Association of Freight Forwarders (SAAFF) has commended Transnet Port Terminals (TPT), Transnet National Ports Authority (TNPA) and International Container Terminal Services (ICTSI) for the progress made to date on port reform at the Durban Container Terminal (DCT).

The parties on December 10 announced the signing of an agreement for the start of a 25-year private sector participation (PSP) deal at the DCT Pier 2 in January.

The SAAFF, however, stresses that the concession must produce the highest performance benchmark South Africa has ever set for container logistics, establishing a globally competitive platform for trade-based growth.

The association underscores that this breakthrough must be stewarded with full transparency, integrity and a collaborative spirit if South Africa is to realise the true value of PSP.

The transaction is structured through a new operating company (NewCo) in which TPT holds a 51% interest and ICTSI 49%, which represents a significant reconfiguration of operational and commercial responsibilities at the country’s largest container terminal.

While the commercial terms are not publicly disclosed, the SAAFF says the information referenced in the course of recent court proceedings points to several critical areas that require disciplined attention and consistent, independent oversight.

The SAAFF says it trusts that the transaction advisers have rigorously interrogated the Terminal Handling Charges and all related terminal charges, given their central role in shaping the cost structure and competitiveness of South Africa’s container value chain over the 25-year concession period.

The association argues that fee frameworks must be transparently set, globally benchmarked and aligned to the country’s trade and industrial priorities, preventing any unintended burden on exporters, importers and the wider supply chain.

Because Pier 2 serves as the primary gateway for containerised trade, which is effectively the largest entry and exit point into a complex, container-dependent economy, the SAAFF says this concession carries significant national implications, noting that it calls for strengthened oversight.

This includes commercial fee structuring that is competitive, predictable and sustainable, supporting long-term trade growth; and robust governance anchored in disciplined investment, including new and refurbished equipment that delivers consistent operational performance.

Additionally, this also includes alignment with national logistics and spatial imperatives, particularly geographical integration with Gauteng and the broader regional hub system, supported by skilled and future-ready labour; and clear recourse mechanisms should be in place in case productivity, service standards or investment undertakings fall short of agreed obligations.

Further, the SAAFF argues that industry clarity is now essential on how the concession interfaces with wider network enablers – including rail slot allocation, border and customs coordination, digital integration and the alignment of terminal operations with the Gauteng hub and regional trade corridors.

Given Pier 2’s role as the country’s primary gateway, transparency on how risk is distributed between NewCo, TPT and TNPA across marine, quayside and landside functions will be critical, the association says, adding that a concession of this scale must not only optimise terminal performance; it must support end-to-end velocity across the national logistics chain.

The association says it is essential that this partnership must stand as a benchmark for excellence in public–private collaboration – grounded in openness, shared accountability and unambiguous integrity.

Only through transparent governance and unified commitment to reform can South Africa convert this development into durable competitiveness to elevate its logistics system into a new era of performance, the association argues.

“Looking ahead, the SAAFF emphasises that long-term competitiveness of South Africa’s logistics system will depend on embracing both inter-port and intra-port competition as principal strategic levers of performance.

“Competitive pressure is the most effective catalyst for accelerated performance, and Transnet has, in recent times, given strong focus to best practice in this arena,” says SAAFF CEO Dr Juanita Maree.

She posits that a competitive port environment stimulates innovation, disciplines costs and raises service standards – ensuring that no terminal, operator or corridor is insulated from accountability and enforcing transparency. 

“For South Africa to regain its position as a leading trade and logistics hub, competition must be embedded as a strategic principle across all ports and terminals.

“This is the pathway, not just to accelerated performance, but to organically boost sustained investment and a logistics system capable of supporting national growth and continental leadership for South Africa.”

Given the significance of this moment and what is at stake for South Africa, the SAAFF, as a representative body, says it issues a clear and unambiguous challenge to the operator and to all governance structures involved, noting that the credibility of this partnership will depend on transparency, measurable delivery and uncompromising accountability.  

The SAAFF says the national imperatives must guide all planning and be rigorously enforced across socioeconomic and environmental dimensions. 

It adds that a systematic transfer of skills throughout the concession period, together with robust and verifiable employment creation and employment creation alongside localisation programmes, must remain non-negotiable outcomes. 

To build and sustain industry confidence, the SAAFF argues that the market requires a clearly defined and publicly communicated key performance indicator framework; realistic and transparent tariff-adjustment oversight, aligned with inflation and productivity; firm, credible and time-bound investment commitments; and full transparency regarding the governance, mandate, and performance obligations of the NewCo.

Additionally, it argues that the market also requires visibility on labour transition, productivity safeguards and dispute resolution frameworks; and publication of safeguard mechanisms and recourse processes available to industry should service levels, investment timelines, or pricing outcomes deviate materially from agreed undertakings; and a commitment that competitive neutrality and non-discriminatory access principles are upheld, with transparency in tariff setting and operational access for all shippers, forwarders and lines.

Maree highlights that meeting these standards is imperative, noting that the sector cannot afford ambiguity, delay or underperformance.

The SAAFF says this partnership must demonstrate, through consistent action and verifiable results, that South Africa can set and sustain world-class benchmarks in port efficiency and logistics competitiveness.

“The opportunity is historic; the responsibility is equally profound.

“For this partnership to earn and sustain confidence, delivery must be evidenced not through promises, but through measurable outcomes, transparent reporting, time-bound investment rollout, and tariff discipline.

“Moreover, the emphasis placed in this communication on ethics, good governance, transparency, and strict compliance with accountability mechanisms is both intentional and necessary.

“These principles are not ancillary expectations; they are the foundation upon which trust, performance, and long-term credibility must be built,” says Maree.