ATI to wrap up P2.15-B deal with SMC

Port operator Asian Terminals Inc. (ATI) expects to wrap up negotiations with food and beverage giant San Miguel Corp. (SMC) for the acquisition by the latter of the Mariveles grain terminal within the next three to four months.

ATI executive chairman and president Richard Barclay said the company is still in talks with SMC for the sale of the grains terminal in Bataan.

"Talks are continuing. So I can’t say too much. But there’s still interest on both sides. We may have news in three to four months," Barclay said.

Located at the mouth of Manila Bay, ATI’s Mariveles grain terminal is considered to be the country’s most modern bulk grains handler and one of the best of its kind in Asia.

SMC has offered to buy the Mariveles grain terminal for P2.15 billion. The deal forms part of the company’s plan to develop its logistics network to improve its agribusiness operations and cut distribution costs.

The terminal, which started operations in 1996, has an average depth of 14.5 meters alongside its Panamax berth and a discharge rate of more than 8,000 tons per day.

The terminal will be used by SMC to handle most of the country’s imports of raw materials which include corn, cassava and possibly sugar for its agribusiness use.

Barclay said the proceeds from the sale of the Mariveles grain terminal will be used to finance the company’s ongoing modernization program in the South Harbor.

ATI is the sole operator of the South Harbor and renders cargo handling services for the country’s import and export cargoes. South Harbor is the country’s largest port with an area of 85 hectares of land and 600 hectares of total anchorage.

The company currently operates various international ports in the country: the container terminal, general stevedoring terminal and the new Eva Macapagal Super Terminal at the South Harbor, Port of Manila; the Port of Batangas, which has terminals for both cargo and passenger ferries; and the Port of Gen. Santos City in Mindanao.