Abbotsford Holdings Inc., a subsidiary of International Container Terminal Services Inc., formed a joint venture with Prime Alta Holdings Inc. for freight and logistics businesses.
The port operator said the joint venture company between Abbotsford and Prime Alta would be named Fortune Logistics Corp. It will primarily operate, engage in and carry on the business of domestic and international ocean, air and land freight forwarding and logistics.
It expects to obtain the Securities and Exchange Commission approval and other standard regulatory permits and licenses within one to two 2 months.
“The rationale for the transaction is to reduce costs and improve operational efficiency associated with the processing of cargo that are intended to be used by ICTSI for its various operations in the Philippines,” ICTSI said.
The joint venture company set the initial capitalization at P25 million, with Abbotsford owning 51 percent and Prime Alta holding the balance of 49 percent.
ICTSI earlier reported a net income of $294.5 million in the first half, up from $196.7 million it earned a year ago.
Revenues in the first half grew 20 percent from $882.6 million reported in the first six months of 2021.
ICTSI said its terminals handled consolidated volume of 5,752,582 twenty-foot equivalent units in the first six months, up 5 percent from 5,459,523 TEUs handled in the same period in 2021.
ICTSI is a leading global developer, manager and operator of container terminals in the 50,000 to 3.5 million TEU/year range. It operates in six continents and continues to pursue container terminal opportunities around the world.