ICTSI’s Indonesia port deal extended by 10 years

MANILA, Philippines - Publicly-listed port operator International Container Terminal Services Inc. (ICTSI) of Filipino businessman Enrique K. Razon has bagged a 10-year contract extension to operate a container terminal in South Sulawesi, Indonesia.

ICTSI finance manager Arthur Tabuena informed the Philippine Stock Exchange (PSE) that PT Makassar Terminal Services (MTS) and PT Pelabuhan Indonesia IV (Pelindo IV)  have agreed to extend the contract to operate a container handling equipment at the Makassar Container Terminal at the Port of Makassar that is set to expire next year.

“The joint operation contract which will originally expire on Sept. 30 next year has been extended by MTS and Pelindo IV until Jan. 31, 2023,” Tabuena stressed.

ICTSI’s subsidiary MTS in Indonesia operates container handling equipment at the Makassar Container Terminal, Port of Makassar, South Sulawesi, Indonesia, under a joint contract with Pelindo IV.

Pelindo IV is a government owned corporation that owns and operates the Makassar Container Terminal.

Last May, ICTSI’s wholly-owned subsidiary PT Karwell Indonesia signed a joint-venture deal with PT PBM Adipurusa for the operation of a significant portion of Tanjung Port in Jakarta.

Part of the partnership between PT Karwell Indonesia and PT PBM Adipurusa is a deal that allows the use of several container loading and unloading equipment of ICTSI at PBM’s facility in Tanjung.

ICTSI was established in 1987 by the Razon clan whose family has been managing harbors in the Philippines for three generations, in connection with the bidding for the Manila International Container Terminal (MICT) contract.

In May 1988, the Philippine Ports Authority awarded the MICT contract to ICTSI, which started its operations of MICT on June 12, 1988. In March 1992, ICTSI’s shares were listed on the Manila and Makati Stock Exchanges (now the PSE).

It directly operates the MICT at the Port of Manila and has developed an inland container depot in Calamba, Laguna linked via rail to the MICT. The company has entered into a joint venture with a local company to develop a container terminal in Batangas.

ICTSI owns or operates facilities in the Philippines, China, Ecuador, Poland, Brazil, Madagascar, Syria, Georgia, Brunei, Indonesia, Japan, India, Colombia, Argentina, Croatia, Mexico and the United States.

ICTSI’s earnings climbed four percent to $105.8 million in the first nine months of the year from $101.4 million booked in the same period last year on the back of higher revenues from port operations here and abroad.