South Africa is moving to modernize its largest container port by inviting private-sector expertise into its operations, Bloomberg reported. Transnet SOC Ltd. has signed a concession agreement with a company led by Filipino billionaire Enrique Razon to expand Durban’s Pier 2, the terminal handling the bulk of the country’s container traffic.

The investment, estimated at 11 billion rand (647 million US dollars), represents the largest private-sector intervention in South Africa’s ports to date. It follows a 2023 agreement that gave International Container Terminal Services Inc. partial ownership and operational control of the same terminal for 25 years, marking a shift toward public-private collaboration in a sector long dominated by state management.

Pier 2 manages roughly 70 percent of Durban port’s container throughput and more than 40 percent of South Africa’s total container volumes, making it a critical hub for both national and regional trade. Transnet Chief Executive Michelle Phillips described the partnership as “a significant step in positioning our ports among the world’s leading.”

The move is part of a broader effort to tackle long-standing inefficiencies. According to the World Bank, South Africa’s state-owned ports rank among the least efficient globally, prompting officials to seek private investment to improve capacity, operational performance, and international competitiveness.