International Container Terminal Services Inc. (ICTSI) remains focused on developing port terminals where it can exert management control.
“We continue our single minded pursuit of our strategy of expanding in the regions that we are focused on, which give the company the best growth opportunities. We intend to pursue further growth in 2024 as we employ our strategy of operating gateway terminals where we have management control in locations with favorable competitive dynamics and high growth potential, while expanding our operating terminals to ensure our resilience,” said Enrique Razon, ICTSI chairman, at the company’s stockholders’ meeting yesterday.
Razon reported to shareholders ICTSI will commence operations of the DCT 2 container terminal in the Port of Durban, South Africa, the largest container terminal in Africa, in the middle of the year.
ICTSI was declared the preferred bidder in July last year for the operation and management of the port.
“Recently, we were informed that we can proceed with finalizing the handover,” Razon said.
In September last year, ICTSI acquired 60 percent of CLIA Pouso Alegre, an Integrated Customs Logistics Center in Minas Gerais, Brazil. Still in Brazil, Rio Brasil Terminal handled the inaugural call of COSCO Shipping Lines’ Europe — East Coast of South America service.
This was followed by the groundbreaking in East Java Multipurpose Terminal (EJMT) in Indonesia for a state-of-the-art gateway for the Lamongan, Tuban and central Java hinterlands in October.
ICTSI is spending $450 million this year mainly to complete the expansion in Brazil and the development of EJMT.
The amount will also finance the ongoing expansion in Mexico, Philippines and Democratic Republic of Congo and pay the last tranche of concession extension related expenditures in Madagascar.
The amount will also fund the development of the recently acquired terminal in Iloilo, the Visayas Container Terminal.
“In August, we secured a $750- million loan from one of the country’s biggest banks to further expand port operations worldwide. To date, this is the biggest credit facility secured by ICTSI and the largest bilateral facility extended by Metrobank. Proceeds of the six-year loan facility will be used to refinance short-term obligations and to fund strategic mergers and acquisitions,” Razon said.
