ICTSI, S’pore firm tie up for project in Colombia

MANILA, Philippines - Listed port giant International Container Terminal Services Inc. (ICTSI) has partnered with Singapore-based PSA International Pte. Ltd. (PSA) to put up and operate a container port terminal and ancillary facilities in Colombia.

ICTSI chairman and president Enrique K. Razon Jr. said the joint venture would develop, construct and operate the container port terminal and ancillary facilities located in the Peninsula of Aguadulce, Buenaventura, Valle del Cauca, Colombia.

Razon said the agreement involves PSA’s investment in Sociedad Puerto Industrial Aguadulce SA (SPIA), an indirect subsidiary of ICTSI, which holds the 30-year concession for the Aguadulce Port project granted by the Agencia Nacional de Infraestructura of Colombia.

“We are excited about the prospect of working with PSA to develop a terminal that we know will be key to Colombia’s trade growth.  PSA and ICTSI share the same aspirations for the Aguadulce Port, and the opportunity to bring this shared goal to fruition presented itself.  We are confident and look forward to the success of this important collaboration,” Razon said.

Under the terms of the agreement, ICTSI’s wholly-owned subsidiaries Kinston Enterprises Corp. and Future Water SA agreed to the purchase by PSA Colombia Pacific Pte. Ltd., a wholly-owned subsidiary of PSA, of SPIA shares representing 45.64 percent of SPIA’s issued and outstanding share capital, subject to the satisfaction of certain conditions precedent to completion.

Upon completion of the agreement, ICTSI and PSA would jointly own 91.28 percent of issued and outstanding share capital of SPIA.  ICTSI and PSA would thereafter work jointly towards the success of the Aguadulce Port project.

PSA Group chief executive officer Tan Chong Meng said the company is delighted to partner with ICTSI and co-invest in the Aguadulce Port project.

 â€œICTSI and PSA will bring our complementary strengths to ensure this greenfield terminal supports the growing demand for trade and logistics in Colombia, amidst the improving business environment in the region,” Meng said.

ICTSI through ICTSI Treasury has jacked up the size of its medium-term note program to $1 billion instead of $750 million to manage its debt portfolio and at the same time bankroll ongoing expansion program in the country and overseas.

ICTSI is in the business of acquiring, developing, managing and operating container ports and terminals worldwide. Established in December 1987 in the Philippines, ICTSI has become a leading operator, innovator and pioneer in its field.

ICTSI is currently pursuing an active program to acquire new terminal concessions in Asia, Australia, the Indian subcontinent, the Middle East, Africa, Europe and the Americas.

Earnings of ICTSI jumped 23 percent to $87.4 million in the first half of the year from $71.1 million in the same period last year while revenue from port operations jumped 20 percent to $413.7 million from $345 million due to strong growth and margin improvement in certain key terminals and the contribution of the new terminal in Karachi Pakistan.