ICTSI pursuing new port projects in Africa
LISTED port operator International Container Terminal Services, Inc., (ICTSI) is pursuing opportunities to bid for new projects in Africa after failing to secure the majority stake in Greece’s Thessaloniki Port.
ICTSI Senior Vice-President and Regional Head of Asia Pacific Christian R. Gonzalez said the firm is currently monitoring two port projects in Africa.
“There’s a couple that we’re very keen on and we’re watching very, very closely. I can’t say what they are, what I can just say is that there are two who are very, very close but not quite imminent but is close and being closely followed,” Mr. Gonzalez said in an interview at the sidelines of the BusinessWorld Economic Forum in Bonifacio Global City on Friday.
ICTSI last month made a bid for Greece’s second-largest port, but lost out to German private equity firm Deutsche Invest Equity Partners’ offer of €231.9 million ($251.8 million).
Mr. Gonzalez said this will have “no effect” to the company’s outlook for its business this year.
ICTSI reported its net income attributable to equity holders jumped 23% in the first quarter of 2017 to $51.7 million from the $42.2 million it earned during the same period last year.
The company attributed the growth to strong operating income, although this was tapered by higher depreciation charges and higher interest and financing charges, as well as an increase in its share in the net loss at its joint venture container terminal project in Buenaventura, Colombia, which hit $7.4 million as it started full commercial operations in the first quarter.
Last month, ICTSI President and Chairman Enrique K. Razon, Jr. said the company will continue to grow by adding more terminals around the world to sustain its growth momentum as Asia is expected to be heavily affected by the Trump administration’s protectionist policies.
ICTSI, which operates 30 terminals in 20 countries, has set a capital expenditure program of $240 million this year mainly for the completion of the initial stage development of its greenfield projects in Democratic Republic of Congo and Iraq; the second stage development of the company’s project in Australia; continuing development of its container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila.
It recently launched its proposed $30-million, common-user barge and roll-on, roll-off (RoRo) terminal in Cavite, whose first phase will support government initiatives to decongest Metro Manila roads and support a total throughput of 115,000 twenty-foot equivalent units every year.