As the preferred bidder, ICTSI will be the first among the three bidders to negotiate an agreement with the Port Authority to implement the terms of the proposal submitted by ICTSI.
ICTSI said in a disclosure to the Philippine Stock Exchange that the agreement calling for the privatization of the commercial port will require the approval of the Guam Legislature.
It has formed a new company, Guam International Container Terminal Inc. for this project.
ICTSI will make a disclosure when an agreement has been successfully negotiated with the Port Authority, and the Guam Legislature has approved it.
ICTSI, which operates the Manila International Container Terminal, also handles the operations of Baltic Container Terminal in Poland and Tecon Suape SA in Brazil. In October, it took over the operation of port facilities at Toamasina, Madagascar. The company also recently formed a joint venture company with Australian-based Anglo Ports Pty. Ltd. to pursue port opportunities in Australia.
ICTSI will also make additional investments in its existing port terminals abroad, including the Suape Container Terminal as part of efforts to make it the preferred gateway port in northeastern Brazil.
The port operator had sold seven of its overseas port operations in 2001 to raise funds to settle debts, and it is now trying to rebuild its foreign port operations.
The company has since acquired and started port operations in Poland and Brazil, and will begin operating two container terminals in Japan’s Naha port in January 2006 when all other approvals have been obtained. ICTSI’s 60-percent owned subsidiary Naha International Container Terminal Inc.has been designated by the Japanese port authority as private operator of the Naha Port Public International Container Terminal for 10 years.
ICTSI more than doubled its net income last year to P1.06 billion, driven by higher contributions from its foreign operations.
The significant improvement in profit was also attributed to the steady and sustained performance of the company’s Philippine operations, particularly the flagship Manila International Container Terminal (MICT).