ICTSI concession for Madagascar port extended by 15 years

MANILA, Philippines —.Ports operator giant International Container Terminal Services Inc. (ICTSI) has secured a 15-year extension for its concession in Madagascar.

In a disclosure to the stock exchange, ICTSI said its wholly owned subsidiary Madagascar International Container Terminal Services Ltd (MICTSL) had signed an extension to its concession agreement with the Société de Gestion du Port Autonome de Toamasina.

MICTSL operates the port of Toamasina in Madagascar.

The agreement extended the original concession, which was to end in October 2025, by 15 years to 2040.

ICTSI has held the concession since 2005, when it awarded a 20-year concession for the operation and management of the port of Toamasina.

Toamasina is the main gateway of Madagascar, with over 90 percent of the country’s containerized cargo handled by MICTSL.

The port of Toamasina is part of the portfolio of terminals and projects operated and managed by ICTSI located in developed and emerging market economies in  Asia Pacific, the Americas,   Europe, the Middle East and Africa.

The company has earmarked a capital expenditure budget of about $250 million this year to be utilized mainly for the completion of the expansion project at Manila International Container Terminal, the ongoing yard expansion at ICTSI DR Congo, the new expansion project at Victoria International Container Terminal in Melbourne, Australia, equipment acquisitions and upgrades, and for various maintenance requirements.

For next year, ICTSI said a substantial part of   its budget would be earmarked for MICT upgrades that will further strengthen the port’s capacity to effectively serve the world’s larger box ships and the increasing volume that comes with a recovering economy.