In a disclosure to the Philippine Stock Exchange, ICTSI said it has asked the Superior Court of Guam to declare the termination of the negotiations unlawful and invalid and to order the port authority to resume negotiations with ICTSI immediately.
ICTSI emerged as the highest bidder for the port’s privatization last December, making it the first of three bidders to sit down with the PAG for a contract. It was on this basis that ICTSI put up a wholly-owned subsidiary to handle the project.
But the port authority objected to ICTSI’s move to incorporate a wholly-owned subsidiary.
ICTSI argued that the PAG’s objection is contrary to Guam’s law which directed the port authority to privatize the operation of the port and which authorized the establishment of a local special purpose entity to operate the port.
ICTSI said while the case is still pending in court, it has retained a legal counsel in Guam to handle this case to protect its interest.
In the meantime, ICTSI is eyeing three or four projects in Eastern Europe, Latin America and the Middle East in line with efforts to rebuild its international operations. The proposed ports will have a capacity of between 300,000-one million TEUs or 20 foot equivalent units.
Aside from this, ICTSI will infuse additional investments in existing port terminals abroad. It has set aside $26 million for the Madagascar International Container Terminal alone, $10 million to $15 million of which will be spent this year.
Last year, its local flagship Manila International Container Terminal (MICT) accounted for 66 percent of consolidated volume or 1,213,109 TEUs, up slightly by less than one percent over the 2004 volume of 1,204,798 TEUs.