ICTSI denies sale of IIHC

International Container Terminal Services, Inc. (ICTSI) denied yesterday that it is in negotiations to sell its stake in ICTSI International Holdings Corp. (IIHC), a subsidiary that manages ICTSI’s foreign ports.

ICTSI issued the denial amid rumors that IIHC is on the seller’s block. Enrique K. Razon Jr., ICTSI chairman and president, explained that although ICTSI has received offers to buy all or part of IIHC, these offers have been rejected.

Razon, however, stressed that the other six IIHC terminals are performing remarkably well. He added that the marketable value of IIHC has, in fact, increased after the termination of the Puerto Rosario project. He also added that Rosario was not a significant profit contributor to the company, and the termination was accomplished with no adverse impact on the company’s other operations.

IIHC holds the interests of ICTSI in the company’s foreign operations. At present, IIHC has six operating terminals located in Argentina, Mexico, Saudi Arabia, Pakistan and Tanzania, and one under development in Thailand. In addition, one of IIHC’s subsidiaries recently gave the highest offer for the Progreso container terminal concession in Mexico.

IIHC expects to handle a company-wide volume of 1.6 million TEUs this year, a 22-percent increase from last year’s volume of 1.3 million TEUs. From this business, IIHC projects to generate consolidated gross revenues of $175 million, an increase of 12 percent from the 1999 revenues. Consolidated net income is projected to be $16 million for 2000, an increase of 52 percent from the net income in 1999, excluding the write off of Rosario.