Int'l Container Terminal Services, Inc.

ICTSI sets USD380-M capex in 2018

MANILA – Port operator International Container Terminal Services, Inc. (ICTSI) has earmarked a capital spending of USD380 million this year after ending 2017 with a seven-percent increase in profit.

In a disclosure to the Philippine Stock Exchange, ICTSI said this year’s capital expenditure budget would be mainly allocated for the capacity expansion in its terminal operations in Manila, Mexico and Iraq.

The company said it would also finance the completion of its new barge terminal project in Cavite City, Philippines, the continuing rehabilitation and development of its container terminal in Honduras, and procurement of additional equipment and minor infrastructure works in its newly acquired terminal operations in Papua New Guinea.

This year’s capital spending budget is 58.3 percent higher compared to USD240 million in 2017.

ICTSI booked a net income of USD207.7 million last year from USD 193 million the previous year.

It attributed the increase in net income mainly to the continuing ramp-up at its new terminal in Matadi in Democratic Republic of Congo, strong operating results from the terminals in Iraq, Mexico, Honduras, Madagascar, China, Poland and Brazil; and the gain related to the termination of the sub-concession agreement in Lagos, Nigeria.

Higher earnings, however, was tapered by higher interest and financing charges, higher depreciation and amortization expenses, start-up costs at the company’s terminal in Melbourne Australia, and increase in share in the net loss at its joint venture container terminal project with PSA International Pte Ltd. in Colombia.

Its revenue from port operations reached USD1.24 billion last year, 10 percent higher compared to USD1.13 billion in 2016.

ICTSI handled consolidated volume of 9,153,458 twenty-foot equivalent units (TEUs) in 2017, five percent more than the 8,689,363 TEUs handled in 2016.

It said volume increased due mainly to continuing improvement in global trade activities, particularly in the emerging markets.


ICTSI readies expansion of three foreign ports in 2018

Port operator International Container Terminal Services Inc. said it is expanding three of its fastest growing terminals including one in Iraq, as it expects global trade to be “good” this year barring the merchandise war that could break out between China and the US.

ICTSI president and chairman Enrique Razon Jr. said in an interview following the  annual stockholders’ meeting the company allocated $380 million programmed for capital expenditures this year to expand the capacity of ports in Iraq, Mexico and Honduras.

Razon said ICTSI would increase the capacity in Iraq to 1 million TEUs (twenty foot equivalent units) and the output in Mexico to 1.5 million TEUs.

ICTSI would also complete the expansion of the Honduras port to boost the total capacity to 1 million TEUs, he said.

In the Philippines, ICTSI is set to complete a new barge terminal in Tanza, Cavite by June this year. The $30 million project, called Cavite Gateway Terminal in partnership with the Department of Transportation, will become the country’s first roll-on roll-off barge terminal. 

CGT will facilitate the off-the-roads transport of containers through the sea lanes of Manila Bay between the port of Manila and Cavite. It will have an annual capacity of 115,000 TEUs, or equivalent to 140,000 fewer trucks on city roads each year.

“This will be the first Build Build Build project developed, conceptualized, started and completed under this current administration,” Razon said.

Meanwhile, Razon said a trade war that could break out between China and the US was among possible disruptions that could affect growth of global trade.

ICTSI’s operation in Mexico is at risk amid prospects of a trade war, while the renegotiation of the North American Free Trade Area could disrupt shipments to Mexico from China.

Razon said the trade war could only be beneficial to ICTSI if China found other export markets.

“Our existing terminals are all growing,” Razon said.


ICTSI takes delivery of three mega boxship cranes at Manila Port

Philippines-based International Container Terminal Services Inc (ICTSI) is keeping up with market developments and has taken delivery of three new cranes at Manila International Container Terminal (MICT) to enable its flagship terminal to handle the world’s largest container ships and be on par with other major ports.

ICTSI said in a press release it took delivery of a pair of neo-panamax quay cranes and a post-panamax quay crane from Shanghai Zhenhua Heavy Industry.

The delivery of the cranes brings the Philippines’ largest port handling equipment to MICT, and the neo-panamax crane will enable the terminal to handle up to 14,000 teu ultra large container ships (ULCS), putting the terminal on equal footing with major ports in developed markets, it said.

“We are now ready for the era of super-sized ships. With the arrival of the new Neo-Panamax cranes, MICT is ready to address the pressing demand and volume increase by servicing larger vessels,” Christian Gonzalez, ICTSI head of global corporate and regional head of Asia Pacific and MICT, said.

The new quay cranes are part of ICTSI’s $80m capital equipment programme for MICT. The pair of neo-panamax cranes and the post-panamax crane will be positioned at Berths 6 and 5, respectively.

Two more quay cranes are expected to arrive next year. The new cranes are expected to boost quayside productivity and cut turnaround times at the port.

“The new cranes, along with other planned improvements at the MICT, will further boost the port’s already efficient turnaround times. This will redound to economic benefits benefiting the entire Philippine supply chain,” Gonzalez said.

“By investing in state-of-the-art infrastructure and equipment, we are strengthening MICT’s position as one of the best-equipped and most technologically advanced terminals serving the intra-Asia trade,” he concluded.


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