ICTSI, PAH form logistics JV company

PORT operator International Container Terminal Services Inc. (ICTSI) announced it is partnering with Prime Alta Holdings Inc. (PAH) for the establishment of a joint venture (JV) company in the Philippines.

According to a disclosure to the Philippines Stock Exchange (PSE) on Sept. 5, 2022, ICTSI, through its subsidiary Abbotsford Holdings Inc., forged a business partnership with PAH for the JV and will be named Fortune Logistics Corp.

The joint venture company will operate, engage in and carry on the business of domestic and international ocean, air and land freight, forwarding and logistics with the purpose of reducing costs and improving operational efficiency associated with the processing of cargo intended to be used by ICTSI for its various operations in the Philippines.

In addition, ICTSI is also looking at potentially utilizing these services on an arm’s length basis to other stakeholders and related parties of ICTSI.

The initial capitalization of this company is P25 million and broken down as follows: Abbotsford Holdings Inc. with 51-percent ownership with an initial subscription of P12.75 million, and Prime Alta with a 49-percent ownership with an initial subscription of P12.25 million. ICTSI through AHI will effectively own 51 percent of the total shareholdings in the joint venture.

Both parties will register the company with the SEC and obtain approval for its incorporation and commence operations immediately thereafter. SEC approval and other standard regulatory permits and licenses are targeted to be obtained within two months from the signing by the parties of the shareholders’ agreement for the JV.