Transnet SOC Limited, a South African state-owned freight transport and handling company, has announced its intent to enter into a fifteen-year concession agreement with AFGRI Operations for the operation and maintenance of landside operations with Transnet Port Terminals.

The agreement will focus on two strategic agri-ports in South Africa, the East London Grain Elevator in the Port of East London and the Durban Agri-Port at the Port of Durban, and is intended to breathe new life into the two terminals through refurbishment, funding, and marketing projects.

The lack of capital investment, as well as a decline in market share, has pressed Transnet to look for a private sector partner to turn these facilities into integrated and efficient agrilogistic supply chain services. AFGRI will be in charge of customer engagements, contracting maintenance, repair and overhaul of the terminals landside equipment and plants.

Transnet Port Terminal, among other things, will provide the funding needed to restore or reconfigure the quaysides and equipment and provide efficient rail capacity for private sector partners.

Both AFGRI and Transnet Port Terminal will be in charge of planning and scheduling of landside and quayside operations, health and safety as well as legal matters. Operations are scheduled to be integrated from April 2019.