ICTSI acquires 49% of Bangkok firm

The International Container Terminal Services Inc. (ICTSI) acquired a 49-percent stake in a Bangkok-based company and is expected to invest 1.2 billion baht for the development of the A2 terminal in the Laem Chabang Port in Thailand.

Earlier, ICTSI, through its subsidiary ICTSI International Holdings Corp. (IIHC), bought into Thai Chabang Terminal Co. Ltd. (TLT) which holds a 30-year concession for the Laem Chabang port.

The IIHC signed last Friday a joint venture agreement with TLT, Ban Saen Mahanakorn Limited Partnership (BSM), Nava Inland Transport Co. Ltd. (NIT) and Repute International Ltd. (TI), enabling the ICTSI Group to invest in TLT.

Under the agreement, the parties will jointly increase the capitalization of TLT as may be required to fund the completion of the A2 terminal.

The shareholdings of the parties will be 49 percent for ICTSI/IIHC; BSM, 33 percent; NIT, 8 percent; and TI, 10 percent.

It was also agreed that TLT will enter into an agreement with IIHC wherein IIHC will provide management and technical services to TLT for the development, management and operation of the A2 terminal.

IIHC holds ICTSI's interests in its foreign operations. TLT holds a 30-year concession for the A terminal. It is 80 percent owned by BSM, and 20 percent owned by NIT.

BSM is a construction company with 18 years experience. NIT on the other hand, is a transport company, TI is a Thai company owned 49 percent by IIHC, but is managed and controlled by IIHC.

TLT was established on Sept. 12, 1996 with an initial registered capital of 200 million baht. It bid for a lease granted by the Port Authority of Thailand to implement the A2-multi-million purpose terminal projects on a build-operate-transfer basis. The 30-year lease contract was signed in September 1996 by PAT and TLT, which became effective on Oct. 1, 1996. BSM and NIT invited ICTSI to provide the resources, experience and expertise to complete the construction and development of the A2 terminal project.

Lying within the Laem Chabang Port, the A2 terminal project is located about 110 kilometers east of Bangkok, and is seen as a gateway of transportation shipment in Indochina and for transshipment to and from Thailand. It is the only multi-purpose terminal in Laem Chabang.

The new project is ICTSI's first venture in Southeast Asia outside of Manila. ICTSI currently operates two ports in Argentina, two in Mexico, one in Pakistan and another in Saudia Arabia.P.S. Feb. 3, 2000P.S. February 3, 2000P.S. Feb. 3, 2000x