ICTSI to build container yard in Congo

MANILA, Philippines - Listed port giant International Container Terminal Services Inc. (ICTSI) is initially investing $100 million to build a container terminal in Congo Central Africa.

In a disclosure to the Philippine Stock Exchange, ICTSI said its subsidiary ICTSI Cooperatief U.A (ICTS Cooperatief) entered into a partnership with La Societe De Gestion Immobiliere Lengo (Simobile) for a joint venture company, International Container Terminal Services Inc-DR Congo (ICTSI DR Congo).

ICTSI chairman and president Enrique K. Razon Jr. said ICTSI DR Congo would be located on the riverbank of the Congo River in Matadi which serves as the main entry point for containers into Congo serving the greater region and the Kinshasa market.

“We have been following the positive economic developments in Congo closely and are proud that we can take part in building the needed infrastructure for the future growth and prosperity of the country,” Razon said.

The first phase of the project costing $100 million involves the construction of two berths with a total length of 350 meters that would service shipping lines, importers and exporters with its modern infrastructure, state of the art equipment and highly skilled staff, matching international standards.

Once the first phase is completed, the facility would be able to handle 120,000 twenty-foot equivalent units (TEUs) and 350,000 metric tons that could be doubled under Phase 2 depending on the demand.

ICTSI DR Congo has an initial capitalization of $12.5 million of which ICTSI through ICTSI Cooperatief would contribute $7.5 million in cash while partner Simobile would contribute a parcel of land valued at $5 million.

ICTSI senior vice president responsible for the Africa Region Jens Floe said the facility is expected to commence operation in 2015.

“We are looking forward to bringing new and improved service to this fast growing economy. We believe we can make a positive impact and decrease total transportation time and cost through this modern and efficient facility,” Floe added.

Earnings of ICTSI jumped 27 percent to $135.65 million in the first nine months of last year from $106.84 million in the same period in 2012 on the back of strong revenues arising from its continued expansion overseas.