In documents submitted to the Securities and Exchange Commission, ICTSI said that out of the estimated budget, P230 million will be spent for civil works, systems improvement and minor cargo handling equipment at the Manila International Container Terminal (MICT) and P110 million for new reefer facilities and IT systems.
ICTSI said the programmed capital outlay does not include other project and start-up costs for international and domestic container terminals that the company may bid for during the year.
The company though estimates to spend $35 million to $40 million for the operation and management of the Baltic Container Terminal in Gdynia, Poland. Funding for this project will come from a combination of internal and external financing.
It expects to assume full operational control of the BCT by the middle of the year. Last year, the BCT handled a total throughput of 250,000 twenty-foot equivalent units (TEUs).
The project is part of ICTSI’s efforts to revive its international expansion after having disposed off foreign unit ICTSI International Holdings Corp. (IIHC) to the Hutchison Group of Hong Kong.
Apart from Poland, ICTSI is also eyeing projects in Canada, India, Japan, Australia, and Thailand.
ICTSI also has a 30-year concession to operate the port of Suape in Brazil.
Although ICTSI as a company has become substantially smaller with the sale of IIHC, this development has strengthened the firm’s balance sheet by providing it the much needed funds to improve liquidity through the retirement of maturing debts.
Proceeds from the sale also enabled ICTSI to tap other investment opportunities.
ICTSI’s holdings in Subic and General Santos will continue to provide the company flexibility for tapping local business opportunites and for maintaining its strong foothold in the industry.
Currently, South Harbor is MICT’s only competitor in the marine international container service market in the Port of Manila. It is operated by Asian Terminals Inc.
ICTSI reported a consolidated net income of P3.04 billion last year, slightly down from the P3.21 billion in 2001, due to provisions for asset impairment losses of P521.8 million as a result of the discontinued operations of wholly-owned subsidiary ICX Corp.
Gross revenues, however, grew 26 percent from P4.4 billion to P5.5 billion, largely due to strong sales volume growth at the MICT; revenues from a new subsidiary, Tecon Suape S.A., and a 10-percent tariff increase on vessel and arrastre charges at the MICT.