Port operator International Container Terminal Services Inc. said it is divesting from a container terminal port in Jakarta, Indonesia.
ICTSI, a company led by businessman Enrique Razon Jr., said Indonesian unit PT ICTSI Jasa Prima Tbk had signed a conditional share purchase agreement with PT Samudera Terminal Indonesia involving its interest in PT Perusahaan Bongkar Muat Olah Jasa Anda or OJA.
ICTSI said the transaction was subject to certain conditions, but did not provide more details.
ICTSI completed the purchase of 100 percent shares of OJA in July 2012. OJA operates Berths 300-303 in Terminal III in the Port of Tanjung Priok which handle international containerized and non-containerized cargo.
ICTSI, a Filipino company with global footprint, earlier signed an agreement for the second major development phase of the Basra Gateway Terminal in North Port, Umm Qasr, Iraq.
The company said two new berths would be developed, incorporating a 20-hectare yard area which would raise annual BGT container handling capacity by 600,000 twenty-foot equivalent units to a total of 1,200,000 TEUs.
The berths will be configured and equipped with quay and landside container handling systems to handle container vessels of up to 10,000 TEUs.
Combined with the adjacent Berth 27, it will offer a continuous berthing line of 600 meters.
The new $100 million investment will be undertaken by ICTSI subsidiary BGT with construction scheduled to start immediately.
ICTSI also signed a 25-year contract with the Papua New Guinea state-owned enterprise, PNG Ports Corporation Limited for the operation, management and development of two international ports in Motukea and Lae in Papua New Guinea.
ICTSI, which operates 27 terminals in 17 countries earlier posted a net income of $103.6 million in the first half of 2017, 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 Cong, 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 in the first half increased 10 percent to $603.7 million from $550.8 million reported in the same period in 2016.
ICTSI budgeted $240 million in capital expenditures this year to fund the completion of the initial stage development of the company’s greenfield projects in Democratic Republic of Congo and Iraq.