Port operator International Container Terminal Services Inc. said Thursday it terminated a 21-year contract to develop and operate a container terminal in Nigeria following the delay in the implementation of the project.
The port operator owned by businessman Enrique Razon Jr. said in a disclosure to the stock exchange subsidiary Lekki International Container Terminal Services LFTZ Enterprise and Lekki Port LFTZ Enterprise mutually agreed to terminate the sub-concession agreement dated Aug. 10, 2012, subject to a payment of an agreed amount to LICTSE.
The agreement granted LICTSE, as a sub-concessionaire, an exclusive right to develop and operate, and to provide handling equipment and container terminal services, at the container terminal within Lekki Port located at Ibeju Lekki, Lagos State, Federal Republic of Nigeria for a period of 21 years.
ICTSI said the termination of the sub-concession agreement was finalized and was deemed effective May 24, 2017.
“The parties arrived at this decision following delays in the execution of the Lekki Port Project,” ICTSI said.
ICTSI did not renew its contract to operate and maintain a container terminal in Brunei in February.
ICTSI Oregon and the Port of Portland also agreed to terminate a 25-year lease agreement to operate the container facility at the Port’s Terminal 6.
The port operator earlier posted a net income of $57.6 million in January to March, down 28 percent from $45.1 million in the same period last year.
Revenue from port operations increased 12 percent in the first quarter to $297 million from $266.5 million a year ago.