Durban Port Shows Recovery Amid Privatization Push
Durban port has been named the world's most improved facility in the World Bank 2025 Container Port Performance Index, recovering from its 2024 ranking as one of the worst globally. While reduced waiting times and increased berth utilization signal operational stabilization, the awarding of a 25-year terminal concession to the Philippine-based firm ICTSI raises critical questions about South Africa's reliance on foreign private capital to fix historically neglected state infrastructure.
How Did Durban Port Improve Its Global Ranking?
The World Bank released its sixth consecutive Container Port Performance Index a few days ago. The index measures vessel time in port, which is a vital indicator of how well supply chains absorb and recover from global disruptions. Durban and Coega port in the Eastern Cape both showed improvements compared to their dismal performance in 2024.
Last year, the port of Durban ranked 403rd globally and sat firmly among the worst performers on the planet. In 2025, the situation shifted. Waiting times dropped from a staggering 20 vessels at anchor to zero. Berth utilization jumped from roughly 52 percent in 2024 to around 76 percent in 2025. This move away from pre-berth delays toward productive operations points to gradual operational stabilization and the initial impacts of equipment recovery.
Why Is Private Sector Involvement Controversial?
The operational gains are tied to new investments and increased private sector participation. The most structurally significant development is the December 2025 awarding of a 25-year concession to International Container Terminal Services, Inc (ICTSI) to modernize Durban Container Terminal Pier 2. The target is to increase capacity from 2 million to 2.8 million TEUs, or Twenty-foot Equivalent Units, starting in 2026.
Economist Dawie Roodt welcomed the shift, attributing the recovery directly to private sector intervention.
I've got a suspicion that Durban improved because of the private sector participation. The port's collapse and the railway's collapse were a major drag on the South African economy, so this is good news. Let's keep this going and get more private sector participation.
Yet, from an Afro-centered economic perspective, handing over a critical piece of national infrastructure to a foreign multinational for a quarter of a century demands intense scrutiny. The historical legacy of Apartheid and colonialism left South Africa's infrastructure deliberately skewed. Outsourcing our primary ports to Western and foreign private capital might ease congestion today, but it risks trading long-term sovereign control for short-term operational fixes. True economic freedom requires building local state capacity, not surrendering it.
Is Durban Port Truly Recovered?
Dr Ntokozo Nzimande from the UKZN Macro-economics Research Unit offers a necessary reality check. He notes that the decline in worker strikes, go-slows, and equipment breakdowns drove the recent progress. However, he warns against premature celebration.
If you look at the report, yes, we are the most improved, but that is because we were among the worst in 2023. We are still performing poorly, but there has been some improvement. We should always applaud improvement, but we are not at the level we want to be to compete in the global market. We are still seeing congestion. We are not better than what we were in 2021. We still have not achieved the level of performance we should be grateful for.
What Does Port Performance Mean for Our Economic Freedom?
The World Bank report highlights that ports in Sub-Saharan Africa generally record longer vessel times. This is often linked to import-dominated trade structures and capacity constraints. This is not an accident. It is the direct result of an extractive colonial economy designed to ship raw materials out and bring manufactured goods in, without building local industrial capacity. Efficient ports are key to how well supply chains function, but we must question who ultimately benefits when our ports are run by foreign entities. Rebalancing our economy means reclaiming control over our infrastructure, not just making it easier for multinational shipping networks to extract our wealth.
Frequently Asked Questions
What is the Container Port Performance Index?
The Container Port Performance Index is a World Bank report that measures container port performance globally. It focuses on vessel time in port as an objective and comparable indicator of efficiency and supply chain resilience.
Who is ICTSI and why did they get the Durban concession?
International Container Terminal Services, Inc is a Philippine-based multinational corporation. They were awarded a 25-year concession by the South African government in December 2025 to modernize Durban Container Terminal Pier 2, with the goal of increasing cargo capacity from 2 million to 2.8 million TEUs by 2026.
Why were Durban port waiting times so long in 2024?
Durban port suffered from severe congestion in 2024 due to frequent worker strikes and go-slows, major equipment breakdowns, and historical capacity constraints linked to years of state neglect and the legacy of colonial economic planning.