Port operator International Container Terminal Services Inc. said Monday it signed a 25-year contract to operate two international ports in Papua New Guinea.
ICTSI, a company led by businessman Enrique Razon Jr., said in a disclosure to the stock exchange subsidiaries Motukea International Terminal Limited and South Pacific International Container Terminal Limited signed the terminal operating agreements with state-owned enterprise PNG Ports Corporation Limited for the operation, management and development of two international ports in Motukea and Lae.
“The agreements and other related contracts will take effect after all the parties have complied with agreed conditions precedent,” ICTSI said.
ICTSI said MITL would provide and deploy cranes, berth and yard equipment for the Port of Motukea.
Newly developed and situated near Port Moresby, Port of Motukea is envisioned to service all port and shipping activities previously done at Port Moresby.
SPICTL shall provide and deploy cranes, berth and yard equipment at the Port of Lae. The port is the largest container handling facility in PNG. Lae, capital of Morobe Province, is PNG’s second largest city. Darwin G. Amojelar
ICTSI earlier signed a share purchase agreement with Petron Corp. for the acquisition of 10,449,000 MNHPI shares, representing 34.83 percent of the total issued and outstanding shares of domestic port terminal for P1.5 billion.
The port operator said the transaction would allow them to contribute its experience, expertise and state-of the-art technology and infrastructure to enhance the operational efficiency of the domestic terminal in the Port of Manila and improve the traffic condition in Metro Manila.
MNHPI won the 25-year contract to manage, develop and operate the 52-hectare seaport terminal.
ICTSI, which operates 27 terminals in 17 countries, earlier posted a net income of $103.6 million in the first half, up 19 percent from $87.3 million a year ago.
ICTSI attributed the increase in net income to the continuing ramp-up at the new terminal in Matadi, Democratic Republic of Congo, strong operating income contribution from the terminals in Iraq, Mexico and Brazil, and the one-time gain on the termination of the sub-concession agreement in Nigeria.
Gross revenues from port operations increased 10 percent in the first half to $603.7 million from $550.8 million reported in the same period in 2016.
ICTSI allotted $240 million for 2017 capital expenditures to fund the completion of the initial stage development of the company’s greenfield projects in Democratic Republic of Congo and Iraq.
The capex will also be used for the second stage development of the company’s project in Australia and continuing development of its container terminals in Mexico and Honduras and capacity expansion in its terminal operations in Manila.