South Africa is strengthening its agricultural export capacity with the awarding of two major port concessions at the Maydon Wharf Precinct in the Port of Durban. The move is aimed at improving logistics efficiency and supporting the country’s growing fresh produce and bulk agricultural exports.

The initiative, led by the Transnet National Ports Authority, is expected to unlock more than R1 billion in private sector investment, reinforcing Durban’s role as a key trade gateway for African agricultural commodities.

Strategic Investments to Enhance Export Capacity

Two private sector operators have been selected to develop and manage specialised terminal facilities under a 25-year concession model.

African Port Logistics and Infrastructure will oversee fresh produce and break-bulk cargo operations, investing approximately R250 million to upgrade handling capacity and infrastructure.

Meanwhile, a consortium comprising BAL SA and Africa Global Logistics will develop a multi-purpose terminal focused on agricultural dry bulk and related cargo, with an investment of about R810 million.

Under the agreement, both operators will finance, design, build, operate and maintain the facilities before transferring them back to Transnet at the end of the concession period.

Strengthening Agricultural Supply Chains

The upgrades are expected to significantly improve the movement of agricultural goods from production zones to global markets. Increased handling capacity for fresh produce and bulk commodities will help reduce bottlenecks and enhance export efficiency.

This is particularly important as South Africa continues to expand its agricultural exports, with products such as citrus, grains and other perishables playing a vital role in trade.

By modernising infrastructure at the Port of Durban, the country is positioning itself to remain competitive in global markets while supporting farmers and agribusinesses across the value chain.

Driving Inclusive Economic Growth

Beyond infrastructure development, the concessions include commitments to supplier development and broader economic inclusion. The projects will create opportunities for black-owned businesses, small and medium enterprises, and historically disadvantaged groups within the logistics and port services sector.

This aligns with national transformation goals and reflects a broader effort to ensure that growth in the export economy benefits a wider segment of society.

Durban’s Role as a Regional Export Hub

The Port of Durban is already one of Africa’s busiest ports, serving as a critical link between Southern Africa and international markets. These new investments are expected to further strengthen its position as a leading export platform for agricultural and perishable goods.

The developments also form part of Transnet’s broader strategy to modernise port infrastructure, improve operational efficiency and attract private sector participation.

Next Steps for Implementation

Following the award of preferred bidder status, the selected operators will enter into negotiations with Transnet to finalise Terminal Operator Agreements. Once concluded, construction and upgrades are expected to move forward, paving the way for increased export capacity in the coming years.

A Boost for South Africa’s Trade Competitiveness

The Durban port concessions mark a significant step in enhancing South Africa’s agricultural export ecosystem. By investing in modern infrastructure and strengthening supply chains, the country is laying the foundation for sustained growth in agricultural trade.

As global demand for food continues to rise, efficient ports like Durban will play a crucial role in connecting African producers to international markets and driving long-term economic development.