Transnet CEO Michelle Phillips says the sale of a 49.99% interest in its largest container terminal last year to International Container Terminal Services had set the tone for the way in which the State-owned group would approach other private sector participation (PSP) transactions across its rail, ports, and pipelines businesses.
Having faced two years of legal delay, the sale of the stake in the Durban Container Terminal Pier 2, now trading as the Durban Gateway Terminal, generated a profit on disposal for Transnet of R12.5-billion.
The one-off windfall emerged as a major contributor to Transnet swinging into a R4.6-billion profit in the year to March 31, 2026, after the group reported a R1.9-billion loss in the prior year.
Phillips said the Durban Gateway Terminal transaction demonstrated the group’s ability to “transact for value” when pursuing PSPs, which she said were now integral to its current strategy and in line with government’s policy of encouraging greater competition in markets hitherto monopolised by Transnet.
She acknowledged, however, that some transactions, including a plan to concession the lossmaking container rail corridor between Durban and Johannesburg, could involve unlocking strategic benefits rather than commercial proceeds.
