Port operator International Container Terminal Services Inc. said Thursday a unit secured a $260-million loan from foreign banks to fund the development of its port in Mexico.
The company led by businessman Enrique Razon Jr. said wholly-owned subsidiary Contecon Manzanillo S.A. de C.V. signed a $260-million project finance facility with International Finance Corp., Inter-American Development Bank, Standard Chartered Bank and KfW Ipex Bank.
CMSA won a contract for the development and operation of a specialized container terminal at the Port of Manzanillo in Manzanillo, Mexico.
The financing package, which has a tenor of 12 years and a long availability period of four years, will help CMSA finance the completion of phases one and two of the project.
The terminal will have a capacity of 2.2 million twenty-foot equivalent units when completely built. The development will be done in three phases, with phase one having a capacity for 750,000 TEUs.
Phase two, which is expected to be completed by 2020, will increase the terminal’s capacity to 1.4 million TEUs.
ICTSI posted a net income of $100.4 million in the first half of the year, down one percent from last year’s $101.7 million.
Revenues amounted to $552.1 million in the first half of the year, up eight percent from $510.3 million on year.
ICTSI handled consolidated volume of 3.90 million TEUs in the first six months this year, up 9 percent from 3.57 million TEUs in the same period in 2014.
ICTSI recently acquired six new rubber tired gantries, which may be deployed at either the MICT or ICTSI’s Subic operations, depending on demand.
The company also plans to expand the Subic Port in anticipation of increased port utilization by 2015.
Port utilization in Subic is expected to hit 21 percent by 2015, which will also improve the usage of ICTSI’s two-berth facility within the free port area administered by the Subic Bay Metropolitan Authority.
ICTSI in July joined four other groups that submitted pre-qualification documents for the P18.99-billion Davao Sasa Port modernization project, the government’s first seaport project under the public-private partnership scheme.