South Africa’s State-owned freight logistics group Transnet has shortlisted ten respondents for private sector participation in the Durban Container Terminal Pier 2 (DCT2), in KwaZulu-Natal, and a further four for the Ngqura Container Terminal (NCT), in the Eastern Cape.

The shortlisted companies, which were identified during a two-step qualification process first initiated in 2021, will now be issued with request for proposal (RFP) documentation, and Transnet aims to appoint preferred bidders by February 2023.

The group is seeking to establish 25-year special purpose vehicles between the winning bidders and Transnet Port Terminals (TPT), which means there will be no sale of assets, with the terminals reverting to TPT once the concession period ends.

The ten shortlisted companies for DCT2 include:

• APM Terminals AMI Management DMCEST;
• China Harbour Engineering Company and Guangzhou Port Company
• COSCO Shipping Ports Limited
• DP World Limited
• Global Ports Services
• Grindrod Freight Services and Hamburger Hafen Und Logistik Aktiengesellschaft
• International Container Terminal Services;
• Red Sea Gateway Terminal and MMC Port Holdings;
• Star Classic Investments Limited and Abu Dhabi Ports; and
• Terminal Investment Limited and REMGRO Limited.

The four respondents shortlisted for the NCT RFP process, meanwhile, include APM Terminals AMI Management DMCEST; Red Sea Gateway Terminal and MMC Port Holdings; Star Classic Investments Limited and Abu Dhabi Ports; and Terminal Investment Limited and REMGRO Limited.

Private sector participation at the two terminals has been identified as a key reform under government’s Operation Vulindlela initiative for raising port efficiencies at the terminals, which are both operating well below their nameplate capacities.

Delivering a recent Operation Vulindlela progress update, Finance Minister Enoch Godongwana described the RFPs as a major step forward in enabling experienced international terminal operators to invest in the expansion of infrastructure and to improve the management of port operations.

Transnet says that partnering with global port terminal operators and shipping lines offers the opportunity to attract much-needed investment, and instil best-practice management and enhanced technological capability to rapidly improve the performance and volume throughput at the two ports.

“Transnet is repositioning Durban as a gateway hub port, and plans for significant growth in container capacity over the coming years.

“As part of the port masterplans, Transnet aims to improve commercial performance and throughput at DCT2 by bringing in a partner with international terminal operations experience.”

At NCT in the Eastern Cape, meanwhile, a transshipment port is envisaged to service east and west coast African traffic, as well as traffic from South America to Asia.

“The terminal has been loss-making for a number of years. The preferred bidder will be expected to bring in additional transshipment volumes and improve terminal performance.”