THE Southern African Association of Freight Forwarders (SAAFF) said in a December statement that it commends Transnet Port Terminals, Transnet National Ports Authority and ICTSI for the progress made – a development that signals the beginning of a transformative new chapter in South Africa’s port reform journey. At the same time, the association emphasises that there is no margin for error. “This 25-year concession must produce the highest performance benchmark South Africa has ever set for container logistics, establishing a globally competitive platform for trade-based growth,” SAFF said.

The transaction — structured through a new operating company with Transnet Port Terminals holding 51% and ICTSI 49% which represents a significant reconfiguration of operational and commercial responsibilities at the country’s largest container terminal.

“SAAFF trusts that the transaction advisers have rigorously interrogated the Terminal Handling Charges (THC) and all related terminal charges, given their central role in shaping the cost structure and competitiveness of South Africa’s container value chain over the 25-year concession period. Fee frameworks must be transparently set, globally benchmarked, and aligned to the country’s trade and industrial priorities, preventing any unintended burden on exporters, importers and the wider supply chain.”

SAAFF noted that it calls for strengthened oversight to ensure:

Commercial fee structuring that is competitive, predictable and sustainable, supporting long-term trade growth.
Robust governance anchored in disciplined investment, including new and refurbished equipment that delivers consistent operational performance.
Alignment with national logistics and spatial imperatives, particularly geographical integration with Gauteng and the broader regional hub system, supported by skilled and future-ready labour.
Clear recourse mechanisms should be in place in case productivity, service standards or investment undertakings fall short of agreed obligations.

Furthermore, SAAFF called for industry clarity on how the concession interfaces with wider network enablers – including rail slot allocation, border and customs coordination, digital integration, and the alignment of terminal operations with the Gauteng hub and regional trade corridors. “Given Pier 2’s role as the country’s primary gateway, transparency on how risk is distributed between NewCo, Transnet Port Terminals (TPT) and Transnet National Ports Authority (TNPA) across marine, quayside and landside functions will be critical. A concession of this scale must not only optimise terminal performance – it must support end-to-end velocity across the national logistics chain.

SAFF said it is essential that this partnership must stand as a benchmark for excellence in public–private collaboration — grounded in openness, shared accountability and unambiguous integrity. Only through transparent governance and unified commitment to reform can South Africa convert this development into durable competitiveness to elevate its logistics system into a new era of performance.

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“Looking ahead, SAAFF emphasises that long-term competitiveness of South Africa’s logistics system will depend on embracing both inter-port and intra-port competition as principal strategic levers of performance. Competitive pressure is the most effective catalyst for accelerated performance, and Transnet has, in recent times, given strong focus to best practice in this arena, said Dr Juanita Maree, CEO of SAAFF.

“A competitive port environment stimulates innovation, disciplines costs and raises service standards – ensuring that no terminal, operator or corridor is insulated from accountability and enforcing transparency. For South Africa to regain its position as a leading trade and logistics hub, competition must be embedded as a strategic principle across all ports and terminals. This is the pathway, not just to accelerated performance, but to organically boost sustained investment and a logistics system capable of supporting national growth and continental leadership for South Africa.”

As the sector’s foremost representative body, SAAFF, issued a clear and unambiguous challenge to the operator and to all governance structures involved: the credibility of this partnership will depend on transparency, measurable delivery and uncompromising accountability. The national imperatives must guide all planning and be rigorously enforced across socio-economic and environmental dimensions. A systematic transfer of skills throughout the concession period, together with robust and verifiable employment creation and employment creation alongside localisation programmes, must remain non-negotiable outcomes, it said.

According to SAAFF, the market requires the following to build and sustain industry confidence:

A clearly defined and publicly communicated KPI framework
Realistic and transparent tariff-adjustment oversight, aligned with inflation and productivity
Firm, credible, and time-bound investment commitments
Full transparency regarding the governance, mandate, and performance obligations of the NewCo
Visibility on labour transition, productivity safeguards and dispute resolution frameworks
Publication of safeguard mechanisms and recourse processes available to industry should service levels, investment timelines, or pricing outcomes deviate materially from agreed undertakings
Commitment that competitive neutrality and non-discriminatory access principles are upheld, with transparency in tariff setting and operational access for all shippers, forwarders, and lines.

Dr Maree says that meeting these standards is imperative. The sector cannot afford ambiguity, delay, or underperformance. This partnership must demonstrate, through consistent action and verifiable results, that South Africa can set and sustain world-class benchmarks in port efficiency and logistics competitiveness.

“The opportunity is historic; the responsibility is equally profound. For this partnership to earn and sustain confidence, delivery must be evidenced not through promises, but through measurable outcomes, transparent reporting, time-bound investment rollout, and tariff discipline. Moreover, the emphasis placed in this communication on ethics, good governance, transparency, and strict compliance with accountability mechanisms is both intentional and necessary. These principles are not ancillary expectations; they are the foundation upon which trust, performance, and long-term credibility must be built.”