ICTSI posts 22% revenue growth in 2003

Port operator International Container Terminal Services Inc. (ICTSI) registered a 22-percent increase in consolidated revenues last year, due mainly to the full year consolidation of new subsidiary Baltic Container Terminal in Gdynia, Poland, the company told the Philippine Stock Exchange.

ICTSI acquired BCT, one of the premier container terminals in Poland, in June 2003.

No other details were given by ICTSI as its auditors are still preparing the company’s audited financial statements for 2003.

ICTSI has earmarked $100 million for a two-phase expansion of the Polish terminal which handled a total throughput of 250,000 twenty-foot equivalent units (TEUs) in 2002. The initial expansion, scheduled for completion by 2007, is intended to boost BCT’s annual capacity to about 900,000 TEUs.

The second phase, which will be conducted on the first eight years of operation, will involve the replacement of existing equipment.

The company is eyeing over half a billion dollars in revenues from BCT’s operations over the 20-year lease period.

ICTSI has vast experience in operating eight terminals on five continents since it first became involved in international operations in the early 1990s. Its flagship container terminal, the Manila International Container Terminal, handles in excess of one million TEUs per annum.

As configured, the BCT covers an area of 60 hectares including four berths for container operations and one ro-ro berth complete with hydraulic ramp. The container stacking area can presently accommodate 11,000 TEUs but this will see a substantial increase following the installation of new, higher density, stacking cranes, which form a key component of the plan to double throughput capacity.

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 has a 30-year concession to operate the Port of Suape in Brazil. It is also eyeing projects in Canada, India, Japan, Australia and Thailand.



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.

ICTSI reported a 28.47 percent drop in net

income for the third quarter to P98 M from P137 M in

the same period last year. The decline was attributed

to higher interest charges from additional long-term

borrowings. From January to September, ICTSI’s net

profits plunged to P320 M from the previous level’s

P3.6 B. In 2002, the company posted a PhP3.7-B

income from the sale of IIHC. (END)