ICTSI content with 50% stake in Manila North Harbor

MANILA, Philippines — International Container Terminal Services Inc. (ICTSI) is not making moves to take a controlling stake in Manila North Harbor Port Inc. (MNHPI) at present after raising its stake in the domestic port to equal that of the San Miguel Corp. (SMC).

“We are very happy the partnership as it stands today,” ICTSI head of Asia Pacific Christian Gonzalez said. 

“We have an operational distribution of responsibility between San Miguel and ourselves. They bring their expertise in financing and administrative side and we bring our expertise on the operational and engineering side. We can really add a lot of value to the business using both sets of expertise,” he said. 

The listed company of billionaire Enrique Razon Jr. announced early this month that it has signed a share purchase agreement with Harbour Centre Port Terminal Inc. (HCPTI) for the acquisition of the latter’s 4.55 million shares in MNHPI, hiking further its stake to 50 percent from 34.83 percent.

The remaining 50 percent is held by SMC.

ICTSI, however, said the completion of the share purchase agreement remains subject to a number of conditions precedent, including approvals from the Philippine Ports Authority (PPA) and the Philippine Competition Commission (PCC).

“We are very confident that we can show the PCC that the cost of doing business, particularly the interlinking of domestic and foreign boxes between the two facilities, will drive cost down for the consumers,” Gonzalez said.

“We will help road congestion that’s for sure,” he said.

MNHPI is a Philippine entity engaged in domestic port terminal business at the 56-hectare Manila North Harbor under contract with the PPA. Redevelopment and modernization of the port is ongoing.

Meanwhile, Gonzalez said the company is set to inaugurate next month the Cavite Gateway Terminal, the country’s first roll-on roll-off barge terminal project.

He said the project is currently operating for initial tests.

“We’re already running the barges back and forth. Inauguration is by October, but we already have some core customers that are using the barge,” Gonzalez said.

“It’s going to be a common user facility but then there’s a lot of demand for it. We’re working on it so operations will be smooth before we start,” he said.