By: Business insider Africa

Transnet, South Africa's state-owned port operator, has signed its first major port privatization agreement, awarding a concession to a firm led by Filipino billionaire Enrique Razon to expand and operate the critical Pier 2 terminal at the Port of Durban. Under the deal, the company will invest approximately 11 billion rand ($647 million) to upgrade infrastructure and enhance efficiency at the terminal, which handles over 40% of South Africa's total container volumes.

This landmark agreement represents a strategic push to modernize the country's ports, which the World Bank ranks among the world's least efficient. Transnet's CEO stated the partnership aligns with the ambition to achieve world-class port operations. Analysts view the private sector involvement as crucial for accelerating modernization, improving cargo turnaround times, and introducing advanced technologies to revitalize South Africa's key trade gateway.