International Container Terminal Services Inc. (ICTSI) said it is buying a controlling stake in Indonesian PT East Java Development to operate a multi-purpose terminal located in Lamongan Regency, East Java.
ICTSI is acquiring 66.7 percent of the company from Indo Port Holding Pte Ltd. and Eastlog Holding Pte Ltd., for $46.5 million, increasing ICTSI’s footprint in the Asia Pacific region.
PT East Java Development’s rights still has 47 remaining years in its concession.
“The purchase price will be paid in cash in multiple tranches over the next year,” ICTSI said.
ICTSI earlier said it will spend $330 million in capital expenditures for the year.
ICTSI has been expanding its footprint overseas with existing operations taking in new routes.
In June, ICTSI said its Georgia operation under Batumi International Container Terminal began servicing ADY Container LLC’s newly launched multimodal feeder service.
The rail-sea service connects Asia to Europe via the Trans-Caspian International Transport Route, also known as the Middle Corridor. It is designed to cater to the capacity requirement of the Middle Corridor, which has seen increased freight traffic due to the growing volume transiting through Azerbaijan.
ICTSI’s Argentina operation under TecPlata SA will also begin servicing a new connection between the La Plata Port and the Port of Montevideo in Uruguay.
TecPlata has signed the agreement with Vessel S.A., one of Uruguay’s major feeder operators for the weekly operation.
