MANILA, Philippines—State-owned development Bank of the Philippines and Land Bank of the Philippines have agreed to jointly provide a P6-billion term loan to port operator International Container Terminal Services Inc. (ICTSI).

Part of the loan proceeds would be used by ICTSI for its capital outlays, including the construction of an additional berth at its flagship Manila International Container Terminal (MICT).

In a statement, DBP president and chief executive officer Reynaldo David said the loan assistance was in line with the bank’s thrust to further improve the efficiency of transporting goods and cargo in the country.

The term loan facility will support the construction of berth 6 at the MICT, which includes a 16-hectare terminal stacking area, support and access roads, and other facilities necessary to ensure the smooth operation of the entire terminal.

The additional berth is expected to increase terminal capacity by 30 percent, to 2.1 million twenty foot equivalent units (TEUs) from 1.6 million TEUs, while maintaining the port efficiency of MICT.

The funds will also be used for the other expansion projects of ICTSI, including the construction and development of the Port of Buenaventura in Colombia.

ICTSI is also considering participating in the development of an all-purpose terminal at the Port of La Plata in Argentina.

ICTSI has a global port network in nine countries in four continents.

It has expanded its portfolio of container port terminals to 14 in 2007 from 10 in 2006, with the acquisition of new ports in China, Ecuador, Georgia, and Syria.