International Container Terminal Services

International Container Terminal Services, Inc.

Type	Public company (PSE: ICT)
Founded	December 24, 1987
Founder	Enrique Razon
Headquarters	Manila, Philippines
Number of locations	29
Key people	Enrique K. Razon Jr. (Chairman and President)
Services	Container Port Establishment Port Management Cargo Handling Rail Freight
Revenue	₱11.388 billion ( 30.1%) (YoY) (2007)[1]
Operating income	₱11.39 billion ( 17.7%) (2007)[1]
Net income	₱2.79 billion ( 52.1%) (2007)[1]
Total assets	₱31.776 billion[1]
Total equity	₱18.4 billion[1]
Owner	Capital Group Companies (8.7%)[2]
Number of employees	1,305 (As of 2007)
Website	www.ictsi.com

International Container Terminal Services, Inc. (ICTSI) (PSE: ICT) is a port management company in the Philippines. It was incorporated on December 24, 1987, and has been cited by the Asian Development Bank as one of the top five major maritime terminal operators in the world.^[3][4][5]

History

ICTSI was established by Filipino businessman Enrique K. Razon, whose family has been managing harbors in the Philippines for three generations, in connection with the bidding for the Manila International Container Terminal (MICT) contract. In February 2015, Forbes magazine named Razon the Third Richest Man in the Philippines, with a personal wealth of $5.2 billion.^[6]

In May 1988, the Philippine Ports Authority awarded the MICT contract to ICTSI, which started its operations of MICT on June 12, 1988. In March 1992, ICTSI's shares were listed on the Manila and Makati Stock Exchanges (now the Philippine Stock Exchange) following the initial public offering of its shares.

The principal business of ICTSI is the management, operation, and development of container terminals. The company directly operates the MICT at the Port of Manila. In addition to its core container terminal activities, ICTSI has developed an inland container depot in Calamba, Laguna linked via rail to the MICT. The company has entered into a joint venture with a local company to develop a container terminal in Batangas.

After consolidating its base and flagship operations at the MICT, ICTSI launched an aggressive international and domestic expansion program in 1994 and now has operations in Japan, Poland, Ecuador, Brazil, Croatia, and Madagascar.

In September 2012, Capital Group Companies CGC has acquired 8.7% of the company shares.^[2]

Asia - Pacific

Manila International Container Terminal, Manila, Philippines

In 1988, ICTSI won in an international tender a 25+25-year concession to manage, operate and develop the Manila International Container Terminal (MICT), ICTSI’s flagship operation and the Philippines’ leading international trading gateway. ICTSI’s responsibilities include: port management, operations and administration, port development and construction including port planning and programming supply of all equipment, and investment risk.

The MICT is one of the three terminals in the Port of Manila, the core of the Philippine port system. The MICT is located between the North and the South Harbors, protruding westward into the Manila Bay at the mouth of the Pasig River, the city's major waterway. A dedicated container terminal, the MICT mainly handles international containerized cargo. ICTSI also handles bulk cargo at the MICT basin anchorage.

The MICT today is the Philippines' largest international container terminal in terms of volume and capacity, capturing 65 percent market share in the Port of Manila. Guaranteed efficiencies make it the most efficient in the country, at par with the best terminals in the world. Moreover, seamlessly integrated operational and administrative systems make it the most modern and efficient terminal in the Philippines.

New Container Terminal 1, Subic Bay Freeport, Olongapo

In June 2007, the Subic Bay Metropolitan Authority (SBMA) awarded SBITC the concession to operate the New Container Terminal – 1 (NCT – 1) at the Subic Bay Freeport.

After transferring its operations from the NSD Terminal to NCT – 1, SBITC began operating NCT – 1 in April 2008. The terminal was formally inaugurated in May of the same year.

New Container Terminal 2, Subic Bay Freeport, Olongapo

In September 2011, the Subic Bay Metropolitan Authority awarded the Contract for the Operation and Management of the New Container Terminal 2 (NCT-2) to ICTSI Subic, Inc.

NCT-2 is the second phase of the Subic port modernization project co-funded by the Japanese government through the Japan Bank for International Cooperation.

Bauan International Port, Batangas

In 1997, ICTSI formed the Bauan International Port, Inc. (BIPI), a joint venture company with Atlantic Gulf and the Pacific Co. (AG&P), to manage, operate and develop the 20-hectares Bauan Terminal. Marubeni Philippines later joined the consortium.

The terminal, a private facility, supports cargo movements in and out of the industrial zones of Southern Luzon.

Makar Wharf, Port of General Santos, South Cotabato

In August 1999, ICTSI, together with Asian Terminals Inc. (ATI), acquired 71.4 percent of the shares of South Cotabato Integrated Port Services, Inc. (SCIPSI), a stevedoring and cargo handling service provider at the Makar Wharf terminal in Gen. Santos City in the island of Mindanao, southern Philippines.

Sasa Wharf, International Port of Davao, Philippines

In December 2006, ICTSI acquired a majority stake in Davao Integrated Port and Stevedoring Services Corp. (DIPSSCOR).

Through Abbotsford Holdings, Inc. (AHI), ICTSI’s Philippine investment arm, ICTSI purchased 90.7 percent of the outstanding capital stock of DIPSSCOR, which has a 10-year contract with the Philippine Ports Authority to provide cargo handling services at the Sasa Wharf in Davao City.

Mindanao Container Terminal, Phividec Industrial Estate, Misamis Oriental

In May 2008, ICTSI and the Phividec Industrial Authority (PIA) officially sealed a 25-year concession to operate the Mindanao Container Terminal (MCT).

'Hijo International Port, Tagum City, Davao, Philippines

In November 2012, ICTSI entered into a joint venture with Hijo Resources Corp. (HRC) to develop and manage the international port in Tagum City, Davao del Norte in southern Philippines.

Laguna Inland Container Depot, Calamba City, Philippines

In 2015, International Container Terminal Services, Inc. (ICTSI), through its subsidiary, IW Cargo Handlers Inc., forged a joint venture with Nippon Container Terminals Co. Ltd., Transnational Diversified Corp. and NYK – Fil-Japan Shipping Corp. to establish an inland container depot in Calamba, Laguna. The Laguna Gateway Inland Container Depot (LGICT) is a medium-term development project to expand the Manila International Container Terminal (MICT).

Yantai International Container Terminal

In April 2007, International Container Terminal Services, Inc. (ICTSI) took over the operation and management of the Yantai Gangtong Container Terminal Ltd. (YGCT), a government owned corporation operating in the Port of Yantai, Shandong Province, People’s Republic of China. YGCT was later renamed Yantai Rising Dragon International Container Terminals Ltd. (YRDICTL) and operated Berths 38 and 39, mostly handling domestic cargo at that time, and gradually building up foreign trade cargo and reached over 50 percent in 2013.

In May 2014, the Chinese government, through the Shandong Ministry of Commerce, approved the consolidation of port services in Yantai. The move enabled ICTSI to purchase 51 percent shares of DP World Yantai Co. Ltd., which operates in Berths 51, 52, 61 and 62. DP World Yantai Co. Ltd. was renamed to Yantai International Container Terminals Ltd. (YICT) and handles all foreign trade cargo in the Yantai market exclusively.

Makassar Container Terminal, South Sulawesi, Indonesia

In May 2006, ICTSI subsidiary, ICTSI Far East Pte. Ltd., purchased 95 percent of the total outstanding shares of Singapore-based Portek Systems and Equipment Pte. Ltd. and Indonesian liner, PT Pelayaran Nusantara Meratus, in PT Makassar Terminal Services (MTS), cargo handler at the Makassar Container Terminal (MCT) in South Sulawesi.

Muara Container Terminal, Brunei Darussalam

On 21 May 2009, International Container Terminal Services, Inc. (ICTSI) and the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, represented by its Ports Department, Ministry of Communications, signed a Services Agreement and a Handover Agreement for the operation and maintenance of the Muara Container Terminal (MCT) in Brunei Darussalam. The agreement covers a period of four years, which may be extended for one year at a time, for a maximum of two years.

Tanjung Priok Berths 300-303, Jakarta, Indonesia

In May 2012, ICTSI’s Singaporean unit ICTSI Far East Ltd, purchased IDX-listed company PT Karwell Indonesia Tbk and renamed it PT ICTSI Jasa Prima Tdk (IJP). In July 2012, ICTSI purchased all the shares of PT PBM Olah Jasa Andal (OJA), operator of Berths 300-303 in the Port of Tanjung Priok in Indonesia.

Pakistan International Container Terminal

In October 2012, International Container Terminal Services, Inc. (ICTSI), through ICTSI Mauritius Limited (ICTSIML), signed a definitive Share Purchase Agreement (SPA) with Pakistan International Container Terminal (PICT) to acquire 35 percent of the outstanding shares of PICT. In November, December 2012, and July 2013, ICTSIML purchased additional shares increasing its ownership to 64.53 percent. This effectively gave ICTSI control of PICT’s 21-year concession at the Karachi Port that began in 2002.

Victoria International Container Terminal

On 29 April 2014, International Container Terminal Services, Inc. (ICTSI), through its Australian Subsidiary, Victoria International Container Terminal Limited (VICTL), signed the contract to design, build, commission, and operate the Terminal and the Empty Container Park (ECP) at Webb Dock East in Melbourne, Australia. ICTSI signed a 26-year contract with Port of Melbourne Corporation (POMC).

Americas

Suape Container Terminal, Pernambuco, Brazil^[7]

In April 2001, the Suape Port Authority declared ICTSI the winning bidder to manage and operate the Suape Container Terminal (SCT) at the Suape Industrial Port Complex in Ipojuca, Pernambuco in the northeastern most tip of Brazil. The concession period is 30 years.

ICTSI established a Brazilian subsidiary, Tecon Suape, S.A. (TSSA), to operate the terminal. TSSA officially took over operations of the SCT in April 2002.

Container and Multipurpose Terminals, Guayaquil, Ecuador

In March 2007, ICTSI was declared winner by Autoridad Portuario de Guayaquil (APG) of the 20-year Public Service Concession for the Container and Multipurpose Terminals at the Port of Guayaquil in Ecuador. ICTSI established Contecon Guayaquil SA (CGSA) as a special purpose company to manage and operate the terminal.

CGSA took over operations in August 2007. The terminal handles containerized, general and bulk cargo, and holds 65 percent market share of the whole of Ecuador.

Terminal 6 Port of Portland, Oregon, USA

In May 2010, ICTSI signed a 25-year lease with the Port of Portland for the operation of the container / breakbulk facility at Terminal 6. The Port of Portland lease is ICTSI’s first venture in the United States of America, and will be the Company’s exclusive focus on the US West Coast. The agreement is also considered the largest financial transaction in the history of the city's maritime port.

Buenaventura Container Terminal Project, Colombia

In July 2007, ICTSI completed agreements for the construction and development of a new multi-user container terminal at the Port of Buenaventura in Colombia. The agreement include the acquisition of stakes in two Panamanian companies to gain effective control of Sociedad Puerto Industrial Aguadulce S.A.

La Plata Container Terminal Project, Argentina

In October 2008, ICTSI concluded the signing of the 30-year Concession Agreements to develop and operate the terminal. Consorcio de Gestion del Puerto La Plata (CGPLP) granted the agreements in favor of TecPlata S.A. The concession is renewable for another 30 years.

Port of Manzanillo, Mexico^[8]

In November 2009, ICTSI was declared winner by the Administracion Portuaria Integral de Manzanillo, S.A. of the 34-year concession for the development and operation of the second Specialized Container Terminal of the Port of Manzanillo.

Specialized Container and General Cargo Terminal, Puerto Cortes, Honduras^[9]

On 1 February 2013, ICTSI won the international bid for the design, financing, construction, maintenance, operation, and exploration of the Specialized Container and General Cargo Terminal of Puerto Cortes in the Republic of Honduras.

On the same day, the Honduran Commission for the Public-Private Alliance awarded ICTSI the 30-year concession during a public hearing in Honduras.

Maritime Terminal of Tuxpan, Port of Tuxpan, Mexico

On 27 May 2015, International Container Terminal Services, Inc. (ICTSI), purchased 100 percent of the capital stock of Terminal Maritima de Tuxpan, S.A. de C.V. (TMT) from Grupo TMM, S.A.B. (TMM) and Inmobiliaria TMM, S.A. de C.V. (ITMM). The purchase effectively transfers TMT’s concession to build and operate a maritime container terminal at the Port of Tuxpan to ICTSI.

Europe, Middle East and Africa

Baltic Container Terminal, Gdynia, Poland

In May 2003, ICTSI was awarded a concession by the Port Authority of Gdynia to develop, operate and manage the container terminal in Gdynia, Poland. The concession period is 20 years. ICTSI purchased 100 percent of the Baltycki Terminal Kontenerowy Sp. z.o.o or Baltic Container Terminal Ltd. (BCT), which had held the lease to the terminal.

Batumi International Container Terminal, Georgia

In September 2007, ICTSI acquired a 48-year concession for cargo handling facility in the Port of Batumi, in the Republic of Georgia. ICTSI Georgia Corp., a wholly owned subsidiary of ICTSI Ltd., obtained the concession from Batumi Port Holdings Ltd. (BPHL). BPHL has the exclusive management right over the State owned shares in Batumi Sea Port Limited.

Adriatic Gate Container Terminal, Croatia

In March 2011, ICTSI successfully concluded negotiations with the existing 30-year concession holder of Adriatic Gate Container Terminal (AGCT) in Rijeka, Croatia.

A Share Purchase Agreement (“Agreement”) was executed by ICTSI Capital BV, ICTSI’s wholly owned subsidiary in the Netherlands, and Luka Rijeka D.D., a Croatian company which owns 100 percent of the shares of AGCT. ICTSI Capital BV now owns 51 percent of AGCT.

Madagascar International Container Terminal, Toamasina, Madagascar

In June 2005, ICTSI signed a 20-year concession with Societe de Gestion du Port Autonome de Toamasine for the operation, management, financing, rehabilitation, and development of the Madagascar International Container Terminal (MICT) in the Port of Toamasina in Madagascar on a public-private partnership basis. ICTSI formed Madagascar International Container Terminal Services Ltd., to manage and operate the terminal.

Lekki International Container Terminal, Lagos, Nigeria

In March 2012, ICTSI and Lekki Port LFTZ Enterprise (LPLE) signed a Memorandum of Understanding for the operation of the container terminal of Tolaram Port@Lekki in Nigeria. The MoU covers a period of 21 years.

ICTSI DR Congo S.A., Democratic Republic of the Congo

In January 2014, International Container Terminal Services, Inc. (ICTSI) through subsidiary ICTSI Coӧperatif U.A., entered a joint venture with La Societe De Gestion Immobiliere Lengo (SIMOBILE) to develop a river port in Mbengu, Matadi, the Democratic Republic of the Congo. ICTSI and SIMOBILE established ICTSI DR Congo S.A. (IDRCSA) to build, manage, and operate a new terminal along the bank of the Congo River in Matadi. ICTSI Coӧperatif owns 60 percent of IDRCSA, while SIMOBILE 40 percent.

Basra Gateway Terminal, Iraq

On 8 April 2014, International Container Terminal Services, Inc. (ICTSI), through its wholly owned subsidiary, ICTSI (M.E.) JLT, signed a contract with General Company for Ports of Iraq to operate, develop, and expand the container handling facilities at the Port of Umm Qasr in Iraq.

See also

• List of Philippine companies
• Port authority
• Port operator

References

External links

• International Container Terminal Services, Inc.
• Philippine Stock Exchange