Another terminal operator agreement signed

Fresh produce terminal gets private operator

SOUTH AFRICA: Signing their fourth terminal operator agreement this year, the Transnet National Ports Authority (TNPA) inked a 20-year contract for the redevelopment and operation of a fresh produce terminal at the Port of Durban’s Point Precinct today.

The agreement with FPT Group (Pty) Ltd marks a milestone for South Africa’s agricultural export logistics network. The concession agreement is concluded in line with a Section 79 Ministerial Directive issued by the Minister of Transport under the National Ports Act of 2005.

The Ministerial Directive secures the continued operation, maintenance and future development of the specialised export terminal, which plays a critical role in handling South Africa’s fresh produce exports. The agreement is expected to accelerate strategic port infrastructure investment, improve logistics efficiencies and reinforce the Port of Durban’s capability to handle growing volumes of time-sensitive agricultural exports.

The port terminal is projected to increase volume throughput to approximately 1.691 million tons per annum (mtpa) by 2028, with annual growth of around 2% and stabilising at 1.906 mtpa by 2034. This expansion is expected to improve export reliability and strengthen the competitiveness of South Africa’s citrus producers in global markets.

As part of the agreement, FPT is expected to unlock significant socio-economic benefits linked to infrastructure investment, enterprise support and job creation. During the redevelopment phase alone, approximately R397 million has been committed towards skills development, small business support and regional economic initiatives linked to terminal operations. Over the operational term of the concession, an estimated R3.3 billion is earmarked for investment in supplier development, localisation and broader economic participation initiatives aligned to TNPA’s transformation objectives.

“This partnership is a game changer for South Africa’s growing agricultural export sector. By unlocking long-term private sector investment, we are reinforcing the Port of Durban’s strategic role in supporting economic growth and export development. The agreement advances the implementation of the Transnet Reinvent for Growth strategy, which prioritises infrastructure modernisation, enabling public-private partnerships and improved logistics performance,” said Mohammed Abdool, TNPA Chief Executive.

Commenting on the partnership, FPT Managing Director Paulo Franco said: “We are confident that this partnership will unlock sustained growth for South Africa’s citrus export sector and the broader economy. By improving access to global markets and enhancing export efficiencies, the partnership is expected to strengthen the competitiveness of South African produce while contributing to increased foreign revenue earnings.

PHOTO: (l-r) Mohammed Abdool, TNPA Chief executive, Mpumi Dweba-Kwetana, Durban Port Manager (standing at the back), Solly Letsoalo , Transnet Group Chief Operating Officer, Hoosen Ahmed FPT General Manager: Durban, Thobile Sosibo, FPT Group HR (standing at the back) and Lauren Thorntin: Assistant to Managing Director.

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