Progress at Durban Gateway Terminal (DGT) has been welcomed by the trucking and logistics industry amid ongoing operational challenges.
This follows Transnet’s announcement of a 7.1% increase in revenue to R88.6 billion last week and its continued implementation of a Private Sector Participation strategy. The strategy includes the DGT transaction with International Container Terminal Services Inc (ICTSI), aimed at supporting the modernisation and long-term competitiveness of South Africa’s port system.
Transnet disposed of a 49.999% interest in DGT to ICTSI for R10.5 billion, from January 1, 2026.
Industry welcomes recovery efforts
The South African Freight and Logistics Association (SAFLA) and the Road Freight Association (RFA) described DGT as a “terminal in healing” in a joint statement.
“Whilst there were challenges, the terminal was functioning well, given the challenges experienced,” the statement said.
The associations said DGT and ICTSI had listened to stakeholder concerns and that two processes were in place to address operational problems.
They added that the terminal required significant refurbishment, upgrading and modernisation to compete with other ports on the Southern African continent.
Gavin Kelly, chief executive officer of the RFA, said short-term measures could reduce pressure on the terminal while upgrades were being implemented.
“Perhaps Transnet can lower container-movement tariffs from other ports for a period, while DGT is brought to the level of efficiency required,” he said.
Dave Logan of SAFLA said the association welcomed the waiving of storage charges while the current challenges were being addressed.
TASA calls for transformation
Tonny Molise, deputy president of the Truckers Association of South Africa (TASA), said improved port performance would not be sufficient without greater economic inclusion.
“Efficiency without inclusion is an incomplete success,” Molise said.
He said Transnet’s operational success should be measured alongside its transformation agenda, with improved port performance translating into contracts and market access for black-owned SMMEs in port logistics, feeder transport and auxiliary services.
“If operational gains only serve to move broad-market cargo faster for established conglomerates, the majority of South Africans remain economically sidelined,” he said.
Molise said TASA supported a functional road-to-rail framework and had made a strategic acquisition in RailRunner.
“Shifting bulk and long-haul freight from road to rail is an economic optimisation strategy, not the displacement of trucking,” he said.
He said increasing rail capacity towards 180 million tonnes, and ultimately 250 million tonnes, was essential to lower the cost of doing business, stimulate GDP growth and address structural unemployment.
“Transnet cannot achieve this scale alone, making private-sector participation necessary,” Molise said.
“Upgrading national rail and port infrastructure is a vital foundation, but the true measure of success is who owns and benefits from the underlying value chain.”
Equipment delays could slow benefits
Industry expert Malcolm Hartwell, head of transport at Deneys and a master mariner, said the long-awaited and litigation-delayed joint venture between Transnet and ICTSI to operate Pier 2 had been welcomed by the logistics sector.
“Durban Gateway Terminal was expected to help alleviate delays for ships calling at Durban and for cargo passing through the port,” Hartwell said.
He said ICTSI’s experience as a global terminal operator was expected to bring expertise and improved efficiencies to one of the continent’s busiest container ports.
However, Hartwell warned that the benefits could take time to emerge.
“DGT is not the only container terminal in Durban. Pier 1 continues to operate under Transnet’s sole control, but DGT was expected to handle the most container traffic,” he said.
Hartwell said he had been advised anecdotally that some containers had recently been delayed by up to three weeks. He said ICTSI had privately attributed the delays to an underestimation of the remedial work required on container gantries and straddle carriers.
“Presumably, this is due to the delay between the initial due diligence and implementation of the joint venture,” he said.
Hartwell said both Transnet and ICTSI would be motivated to resolve the problems.
“Transnet does not want to lose the momentum and favourable publicity it has received as a result of its initiatives. ICTSI will want to preserve its reputation, generate a profit and gain access to other Transnet terminals in the future,” he said.
He said the situation coincided with the introduction of congestion surcharges by shipping lines ahead of the expected seasonal increase in imports.
“We remain of the view that, in general, private-sector involvement in Transnet’s entities must improve services and reduce delays,” Hartwell said.
“The costs of these delays are currently borne by the South African economy and its long-suffering consumers.”
yogashen.pillay@nationalmg.co.za