ICTSI Pays Secret Price to Lock Down Southern Africa’s Trade Lanes
Philippine terminal giant ICTSI buys 100 % of The Logistics Group, adding bulk and agri-cargo to its African footprint.
International Container Terminal Services Inc. (ICTSI) has taken a decisive step to strengthen its position in Southern Africa by agreeing to acquire The Logistics Group (TLG), a South African firm specializing in integrated logistics. The deal will grant ICTSI full ownership of TLG Acquisition Holdings, currently controlled by African Infrastructure Investment Managers (AIIM) and Mokobela Shataki Proprietary Limited. AIIM holds a 74% stake in TLG, while Mokobela Shataki owns the remaining 26%.
The acquisition aligns with ICTSI’s broader strategy to expand its influence in Africa, a region increasingly vital to global supply chains. TLG operates across South Africa, Mozambique, and Namibia, handling bulk commodities and agricultural products—sectors that form the backbone of the region’s economy. For ICTSI, which already manages terminals in five African countries, including the Democratic Republic of Congo and Madagascar, the deal represents an opportunity to diversify beyond container operations.
Strategic Expansion in a Key Market: ICTSI
One of ICTSI’s most significant African assets is the Durban Container Terminal (DCT) Pier 2, which processes 72% of Durban’s port throughput and nearly half of South Africa’s container traffic. The company secured a 25-year concession to operate the terminal in 2023, though the award faced legal challenges from rival APM Terminals. The Durban High Court ultimately upheld the decision, clearing the way for ICTSI’s deeper involvement in South Africa’s logistics sector.
ICTSI’s financial results underscore its growth trajectory. In the first half of 2026, the company reported a 16% increase in container throughput, reaching 8.1 million TEUs, with DCT Pier 2 and Indonesia’s Batu Ampar Container Terminal driving much of the growth. Revenue rose by 27% to $1.9 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 24% to $1.2 billion.
Financial Performance and Future Outlook
The TLG acquisition, if approved by regulators, could further bolster ICTSI’s portfolio. The company has also expanded elsewhere, purchasing two dry bulk terminals at Brazil’s Port of Aratu for $150 million in July 2026. However, the deal’s success hinges on navigating regulatory scrutiny, particularly regarding competition concerns in Southern Africa’s logistics sector.
For the region, ICTSI’s growing presence could bring operational improvements to ports long plagued by inefficiencies. Yet, critics warn of potential risks, including market dominance and the balance of power with state-owned logistics providers like Transnet. As ICTSI awaits regulatory clearance, its next financial report may reveal whether the gamble on TLG pays off.
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