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Transnet National Ports Authority (TNPA) and the FPT Group (Pty) Ltd have signed a long-term contract for 20 years to redesign and operate a fresh produce terminal at the Port of Durban. This agreement represents an important step in strengthening the logistics network for agricultural exports in South Africa. The contract was concluded in accordance with a ministerial directive under the National Ports Act of 2005 and secures the operation, maintenance, and future development of the specialized export terminal.
Expected increase in export volume
The terminal is expected to reach a throughput capacity of approximately 1.691 million tons of goods per year by 2028, with an annual growth rate of around 2%. By 2034, stabilization at 1.906 million tons per year is projected. This expansion could enhance the reliability of exports and strengthen the competitiveness of South African citrus producers in global markets. The citrus industry plays a significant role in the country’s agriculture and supports numerous jobs in agriculture, packaging, transport, and export.
Under the contract, FPT is expected to unlock significant socioeconomic benefits through investments in infrastructure, support for businesses, and job creation. In the redesign phase alone, approximately 397 million Rand is allocated for skills development, support for small enterprises, and regional economic initiatives. Over the duration of the concession agreement, investments estimated at around 181 million USD are planned for supplier development, localization, and broader economic participation.
Strategic partnership for economic growth
Mohammed Abdool (right), the Chief Executive of TNPA, commented on the partnership: “This collaboration is a key factor for the growing export sector of South African agriculture. By unlocking long-term private investments, we strengthen the strategic role of the Port of Durban in supporting economic growth and export development.” Abdool emphasized that the agreement advances the implementation of Transnet’s strategy “Reinvent for Growth,” which prioritizes infrastructure modernization and logistics performance improvement.
Paulo Franco, Managing Director of FPT, also expressed optimism: “We are confident that this partnership will enable sustainable growth for South Africa’s citrus export sector and the broader economy. By improving access to global markets and increasing export efficiency, the competitiveness of South African products will be strengthened, leading to higher foreign revenue.” Franco highlighted that the significant investments in the redesign of the terminal will also contribute to job preservation and create new employment opportunities.
