ICTSI overseas unit, partner to operate seaport in Colombia

Global port operator PSA International Ptd. Ltd. has completed its investment in a unit of Enrique Razon Jr. –led International Container Terminal Services Inc. that will develop and operate a seaport in Colombia.

The ICTSI indirect subsidiary, Sociedad Puerto Industrial Aguadulce S.A., holds a 30-year concession to develop, construct and operate the container port terminal and ancilliary facilities in the Peninsula of Aguadulce, Buenaventura, Valle del Cauca, Colombia.

The amount of investment has yet to be finalized, ICTSI treasurer and vice president for finance Rafael Consing said in a text message.

“The JV (joint venture) partners will review and approve the budget for the construction of the container port terminal in Buenaventura, Colombia,” he said.

The concession was granted by the Agencia Nacional de Infraestructura of Colombia.

“With the completion of PSA’s investment in SPIA, ICTSI and PSA, through their respective subsidiaries now jointly own 91.28 percent of the issued and outstanding share capital of SPIA,” ICTSI’s filing in the Philippine Stock Exchange showed.

PSA is a leading port group with projects across Asia, Europe and the Americas. Its flagship operations are in Singapore and Antwerp.

Developing and operating ports overseas have been a key part of ICTSI’s strategy. It currently derives about 65 percent of its earnings from operations overseas.

Consing earlier noted that ICTSI was looking at a handful  of privatization efforts in Africa, Eastern Europe and Asia.

ICTSI’s $550-million budget this year will be used to complete terminal development projects in Argentina and Mexico, and to ramp up expansion in Colombia and Davao.

It may raise more funds next year if it succeeds in acquiring new ports, Consing said in a previous interview.

ICTSI earlier increased its note borrowing program by a quarter to $1 billion. So far, it has issued $607 million worth of debt paper, Consing said.

Net income in the six months to June this year reached $82.9 million, up 18 percent, the company reported previously. Revenue from port operations also increased by 20 percent to $413.7 million.

The company operates seven key terminals such as those in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan. Collectively, they account for 85 percent of the company’s total revenue.