ICTSI pursuing $343-M expansion of container terminal in Australia

Razon-led International Container Terminal Services Inc. (ICTSI) plans to spend $343 million to expand its operations in the Port of Melbourne in a bid to make it the largest of its kind in Australia.

ICTSI yesterday announced its plan to invest $343 million, or about P19 billion, in the Victoria International Container Terminal (VICT) to enhance its capacity.

Before this, ICTSI had spent $481 million, or nearly P27 billion, in developing the VICT, making the firm one of the largest foreign investors in the State of Victoria.

Under the proposal, ICTSI will develop the Webb Dock North Container in phases leading to the integration of its operations with the VICT. ICTSI said that its plan would increase the efficiency of the Port of

Melbourne at a lower investment cost and lesser environmental impact compared to submissions made by its competitors.

ICTSI executive vice president Christian Gonzalez said the project should broaden the container capacity of the VICT to 3.7 million TEUs. Further, VICT would host four container berths that can accommodate vessels with up to 14,000 TEUs and 367 meters in length.

Gonzalez said ICTSI has hired the services of global firms to review its proposal in comparison to prior plans to expand the Port of Melbourne, with Jacobs Engineering conducting the detailed technical assessment and Boston Consulting Group doing the market and economic evaluation.

Based on the study, Gonzalez said ICTSI’s proposal could deliver savings of up to $165 million, or more than P9 billion, for the project cost.

Moving forward, the Razon-led firm informed the owners of the Port of Melbourne that it could test ICTSI’s plan in any competitive process. It also relayed its willingness to share further details on its proposal to improve one of Australia’s largest ports.

“Victoria’s growing economy presents the Port of Melbourne with the opportunity to consolidate its position as Australia’s number one container port. ICTSI is keen on solidifying our partnership with Port of Melbourne to deliver the lowest cost, most efficient and environmentally sustainable solution,” Gonzales said.

ICTSI, under the leadership of its chairman Enrique Razon Jr., wants to complete its expansion projects that were halted by the logistics slowdown at the height of the pandemic.

At present, ICTSI builds, manages and sustains container terminals across six continents.