Two recently awarded concessions between Transnet National Ports Authority (TNPA) and private sector companies in the Maydon Wharf precinct of the Port of Durban are poised to improve South Africa’s food security and global trade competitiveness.

The transactions between TNPA and African Port Logistics and Infrastructure and BAL SA & Africa Global Logistics Consortium, will unlock more than R1-billion of private sector investment into modernised port infrastructure and strengthen Durban’s strategic position for agricultural and perishable exports.

African Port Logistics and Infrastructure has been named the preferred bidder to handle fresh produce and compatible break-bulk cargo through a planned investment of R250-million, while the BAL SA & Africa Global Logistics Consortium has committed R810-million in capital expenditure to develop a multi-purpose terminal handling agricultural dry bulk and other compatible cargo.

These brownfield concessions grant the private operators licences to finance, design, build, operate and maintain the upgraded terminal facilities before handing them over to TNPA at the end of the 25-year concession tenure.

Beyond infrastructure upgrades, TNPA expects the upgraded facilities to deliver a meaningful economic impact to local businesses and the broader Southern African Development Community region.

Both companies have made firm commitments to promote transformation and inclusive economic growth, including through the participation of black-owned small and emerging enterprises, as well as expanded opportunities for previously disadvantaged people.

“These concessions not only respond to market demands but also advance national priorities that enable the port to transform as prescribed by Transnet’s ‘reinvent for growth’ strategy,” says TNPA commercial services GM Dr Dineo Mazibuko.

She adds that by unlocking such significant investment, TNPA is ensuring that Maydon Wharf evolves into a modern, efficient, terminalized and automated inclusive logistics hub.

The preferred bidders will now enter negotiations with TNPA to finalise Terminal Operator Agreements. This governance process will mark the next steps in implementing these strategically significant developments.