ICTSI proceeds with 26-year extension for Australian unit

MANILA, Philippines — Port giant International Container Terminal Services Inc. (ICTSI) is proceeding with the 26-year extension of its contract to operate and maintain one of the world’s most technologically advanced terminals.

In a stock exchange filing, ICTSI said all conditions precedent and required regulatory approvals for the extension of the Victoria International Container Terminal Ltd. (VICT) terminal operating agreement have been satisfied as of June 25.

“Accordingly, the 26-year extension of VICT’s concession to operate and manage the Webb Dock East terminal at the Port of Melbourne is now effective, extending the contract term from 2040 to 2066,” the company said.

ICTSI early this year said that its wholly owned subsidiary, VICT and Port of Melbourne Operations Pty Ltd. signed an extension of its contract to operate and manage the Webb Dock East terminal located in the Port of Melbourne for another 26 years.

The contract extension increases the remaining life of its contract to a total of 40 years.  According to ICTSI, an ongoing investment program due for completion in late 2026 will increase estimated capacity to 1.6 million twenty-foot equivalent units.

It said that no significant capital expenditure for further capacity expansion is anticipated under the terms of the extended contract.

“As Australia’s first fully automated container terminal and one of the most technologically advanced in the world, coupled with the ability to accommodate larger container ships, VICT remains positioned as the premier gateway to Melbourne and the state of Victoria,” ICTSI said.

ICTSI began operating in Australia in 2014, when the original lease was signed, and has since invested in upgrading Webb Dock East to ensure capacity meets demand.