Port operator International Container Terminal Services Inc. said it is expanding three of its fastest growing terminals including one in Iraq, as it expects global trade to be “good” this year barring the merchandise war that could break out between China and the US.
ICTSI president and chairman Enrique Razon Jr. said in an interview following the annual stockholders’ meeting the company allocated $380 million programmed for capital expenditures this year to expand the capacity of ports in Iraq, Mexico and Honduras.
Razon said ICTSI would increase the capacity in Iraq to 1 million TEUs (twenty foot equivalent units) and the output in Mexico to 1.5 million TEUs.
ICTSI would also complete the expansion of the Honduras port to boost the total capacity to 1 million TEUs, he said.
In the Philippines, ICTSI is set to complete a new barge terminal in Tanza, Cavite by June this year. The $30 million project, called Cavite Gateway Terminal in partnership with the Department of Transportation, will become the country’s first roll-on roll-off barge terminal.
CGT will facilitate the off-the-roads transport of containers through the sea lanes of Manila Bay between the port of Manila and Cavite. It will have an annual capacity of 115,000 TEUs, or equivalent to 140,000 fewer trucks on city roads each year.
“This will be the first Build Build Build project developed, conceptualized, started and completed under this current administration,” Razon said.
Meanwhile, Razon said a trade war that could break out between China and the US was among possible disruptions that could affect growth of global trade.
ICTSI’s operation in Mexico is at risk amid prospects of a trade war, while the renegotiation of the North American Free Trade Area could disrupt shipments to Mexico from China.
Razon said the trade war could only be beneficial to ICTSI if China found other export markets.
“Our existing terminals are all growing,” Razon said.