South Africa’s most important port is going from zero to hero

Durban’s container terminal has been rated as the most improved port for 2025 in the latest Container Port Performance Index (CPPI). 

This is good news for South Africa’s economy, as Durban’s container terminal is the largest in the country and is critical to the flow of goods to and from Gauteng. 

Despite these improvements, the port remains among the least efficient in the world and still requires significant investment to upgrade its infrastructure and equipment. 

Transnet hopes that the concessioning of the terminal to International Container Terminal Services (ICTSI) will result in the required investments to improve efficiency. 

This will take time to play out, with ICTSI only taking over control of the terminal in December 2025, following legal battles and lengthy regulatory delays. 

The project to modernise Durban’s port has received a boost, with the CPPI confirming that the interventions implemented have put it on the right path to regain its position among the best ports in Africa. 

The CPPI is an annual index compiled by the World Bank and S&P Global Market Intelligence, based on observed vessel time in port. 

This index has become the benchmark for comparing port efficiency worldwide, based on actual vessel call data rather than self-reported indicators. 

The data collected for Durban showed a strong improvement in the port’s efficiency in 2025, with it not suffering the extended wait times of previous years. 

Durban’s CPPI score improved by 479 points, the most of any port in 2025, taking it from -721 to -242 and moving it off the bottom of the table. 

This was on the back of operational stabilisation, with Durban reducing vessel waiting times from 20 vessels to zero. 

The World Bank said this is largely due to equipment recovery from increased investment and management reforms. 

More importantly, Durban began to exhibit characteristics of highly efficient ports worldwide, with a pronounced shift away from unproductive pre-berth delays. 

The share of time vessels spent at berth increased from 52% in 2024 to 76% in 2025, resulting in far greater cargo efficiency. 

Privatisation boost 

Durban’s resurgence received a significant boost with the official commissioning of ICTSI’s modernisation of its Pier 2 container terminal. 

Awarded in December 2025, the commission will run for 25 years and will see ICTSI invest heavily in upgrading the port and implementing international best practices. 

ICTSI is a global port management company based in the Philippines. It runs some of the most efficient container terminals in the world. 

Transnet has set ambitious targets for ICTSI, with the company expected to increase Durban’s capacity from 2 million containers to around 2.8 million starting in 2026. 

Some of the steps to improve Durban’s efficiency are relatively simple, such as acquiring new tugboats, cranes, hauliers, and trailers. 

Others will be more difficult to implement, such as changes to management structures and operational systems. 

Transnet retains a 51% share in the terminal and remains the employer of workers contracted out to ICTSI. 

However, ICTSI has management control and is fairly free to introduce changes to the terminal’s operations. 

Stanlib chief economist Kevin Lings has described the move to private control as the best news for South Africa’s economy in decades. 

Lings said it is a key development for South Africa’s reform agenda to deregulate key sectors of the economy and stimulate private investment. 

“To me, this is the most encouraging development in South Africa for quite some time, and I think we can now be hopeful that more investment will occur in Durban’s port and generally improve its efficiency,” Lings said. 

“The sooner that happens, the better South Africa will be in terms of showing that the private sector can make a difference to some of the large infrastructure initiatives.” 

Lings explained that a positive impact from ICTSI at Durban’s container terminal will likely lead to more such initiatives occurring, which will benefit the local economy immensely.