ICTSI drops Indonesia ops

The agreement was originally set to expire on 30 September 2013 but it was extended for another decade

A subsidiary of the Razon-led International Container Terminal Services Inc. terminated its decade-long operations at the Port of Makassar in the capital city of South Sulawesi, Indonesia.

In a stock report on Tuesday, ICTSI said PT Makassar Terminal Services or MTS, which it acquired in May 2006 through its wholly -owned unit ICTSI Far East Pte. Ltd., terminated its container -handling contract in Makassar Port Container Terminal or MPT.

When the global port operator bought out MTS, it had a Cooperation Agreement with PT Pelabuhan Indonesia IV, covering the procurement, installation, and operation of container loading and unloading equipment at the MPT.

Mutual decision

“The parties have mutually agreed not to renew the (agreement). (Given) the foregoing, MTS, which is one of ICTSI’s three operating subsidiaries in Indonesia, will immediately cease operations at the Makassar Container Terminal,” ICTSI said in its disclosure.

The agreement was originally set to expire on 30 September 2013 but it was extended for another decade or until 31 January 2023, which was yesterday.

The Port of Makassar is a seaport, which has reportedly the highest passenger traffic among Indonesian ports and the largest cargo traffic in Sulawesi. It is considered a primary port in the country.

Despite the closure of one of its businesses abroad, ICTSI is still continuously expanding its footprint.

Just last December, another wholly-owned subsidiary of the company invested P507 million to acquire shares at the Bauan International Port Inc. from Japanese firm Marubeni Corporation.