ICTSI takes over 2 PNG terminals

MANILA, Philippines — International Container Terminal Services Inc. (ICTSI) has signed deals to operate two international ports in Papua New Guinea (PNG) for 25 years.

“The terminal operating agreements were signed by ICTSI’s PNG subsidiaries, Motukea International Terminal Limited (MITL) and South Pacific International Container Terminal Limited (SPICTL), with the PNG state-owned enterprise, PNG Ports Corp. Limited (PNGPCL) for the operation, management and development of the two ports,” the port operator said in a disclosure to the Philippine Stock Exchange yesterday.

It said the agreements and other related contracts would take effect after all the parties have complied with conditions precedent.

Under the agreement signed by MITL, the ICTSI subsidiary would be responsible for deployment of cranes, berth and yard equipment for the port of Motukea located near Port Moresby.

The port of Motukea is expected to cater to all port and shipping activities previously done at Port Moresby.

SPICTL, meanwhile, will provide cranes, berth and yard equipment at the port of Lae, the largest container handling facility in PNG.

ICTSI, which was established in 1988 in Manila, is engaged in port development, management and operations.

It has a portfolio of terminals and projects in both developed and emerging economies in the Asia Pacific, the Americas, Europe, the Middle East and Africa.

Last week, it signed a share purchase agreement to acquire the 35 percent stake of Petron Corp. in Manila North Harbor Port Inc. for P1.75 billion.

“The transaction will allow ICTSI to contribute its experience, expertise and state-of the-art technology and infrastructure to enhance the operational efficiency of the domestic terminal in the port of Manila and improve the traffic condition in Metro Manila,” it said.

As of the first semester, ICTSI’s net income reached $115.1 million, 24 percent higher than the $92.6 million in the same period last year.