ICTSI inks contract to operate ports in Papua New Guinea

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) on Monday said it has secured contracts to operate the ports in Montukea and Lae in Papua New Guinea (PNG).

In a disclosure to the stock exchange, ICTSI said its subsidiaries, Motukea International Terminal Limited ( MITL) and South Pacific International Container Terminal Limited ( SPICTL) signed the terminal operating agreements with state- owned PNG Ports Corporation Limited.

Under the deal, MITL and SPICTL will operate the two ports for 25 years.

MITL will provide and deploy cranes, berth and yard equipment for the Port of Motukea, which has only been recently developed and is situated near Port Moresby.

SPICTL will handle the deployment of cranes and other equipment at Port of Lae, the largest container handling facility in Papua New Guinea. Lae is the second largest city in the country.

The listed port operator earlier said it is looking to bid for new projects this year to sustain its growth momentum amid headwinds that continue to affect global trade.

ICTSI, which operates 30 terminals in 20 countries, lowered its budget for capital expenditures this year to $240 million from the $420 million it set for 2016. Last year, the company spent only $391.9 million of the programmed capex as most of its expansion projects were completed.

The estimated $ 240- million capital expenditure budget will be used mainly to complete the Phase 2 of the terminal construction at Victoria International Container Terminal Ltd. in Australia; as well as finish 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’s net income attributable to equity holders went up 19% to $103.6 million for the first six months of 2017, while gross revenues from port operations increased 10% to $603.7 million.

Shares in ICTSI fell 2.46% or P2.60 to close at P103 each on Monday. —