ICTSI allots $25 million to complete Colombia port

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) is spending $25 million to complete the development of the Port of Buenaventura in Colombia.

The annual report of the listed port operator submitted to the Philippine Stock Exchange showed that the amount is not included in the group’s $ 240- million capital expenditure budget for 2017, which is mostly for the completion of its other ongoing port expansion projects.

“ICTSI’s capital expenditures for 2017 are expected to be approximately $ 240 million, excluding the group’s estimated share on the joint venture project with PSA amounting to $ 25 million to complete the development of the Port of Buenaventura at SPIA,” the Enrique K. Razon- led company said in its regulatory filing.

In March, ICTSI opened Puerto Aguadulce, a joint venture investment with PSA International, in the Port of Buenaventura, Colombia. The first phase of the $ 550- million world class multiuser container and bulk handling terminal facility can handle mega container vessels with capacities of up to 18,000 twenty-foot equivalent units (TEUs).

Under the first phase of development, the terminal can handle 550,000 TEUs annually using two container berths. The bulk terminal, on the other hand, will have a capacity of two million tons annually.

ICTSI and PSA signed the agreement to jointly develop, construct and operate the terminal and its ancillary facilities back in September 2013. The terminal had its soft opening late in November 2016.

Puerto Aguadulce, operated by Sociedad Puerto Industrial de Aguadulce, the joint venture company of ICTSI and PSA, features state of the art cargo handling equipment, leading edge operating systems and top- of- the- line facilities and infrastructure. It is equipped with neo post- Panamax quay cranes and the latest in port technology.

For this year, ICTSI said the estimated $ 240 million capital expenditure budget will be utilized “mainly” to complete the Phase 2 of the terminal construction at Victoria International Container Terminal Ltd. in Australia; as well as complete the development of port facilities at DR Congo — Matadi Gateway Terminal in the Congo and expansion projects at ICTSI Iraq and Contecon Manzanillo, SA.

ICTSI will also continue the rehabilitation and development work at Operadora Portuaria Centroamericana, SA in Mexico, and begin the expansion project at the Manila International Container Terminal (MICT).

“The group expects to fund these capital expenditures through a combination of available cash, internally generated funds, third party loans and other fund raising activities, if necessary,” it added.

ICTSI saw its revenues from port operations rise 7% to $1.128 billion in 2016 from $ 1.051 billion “mainly due to improvement in trade activities” in its Philippine ports and expansion in its overseas operations. It handled consolidated volume of 8.689 million TEUs for 2016, 12% more than the 7.775 TEUs handled in 2015.

Based on its annual report, its Asia operations accounted for bulk of the volume it handles last year or 4.552 million TEUs, up 11.2% from 4.094 million TEUs in 2015. From the Americas, it reported 3 million TEUs handles (from 2.738 million), while from its Europe, Middle East and Africa operations, it handled 1.131 million TEUs (from 943,334).

Shares in ICTSI slipped 0.17% to P89.85 apiece from P90 each.