ICTSI in joint venture to develop African port

International Container Terminal Services Inc. (ICTSI) has established a partnership for the development and management of a river port and container terminal in the Republic of Congo in Central Africa.

In a disclosure it filed with the Philippine Stock Exchange Friday, ICTSI said total investments in the project would reach $100 million for the first five years.

ICTSI, controlled by billionaire Enrique Razon Jr., pursued the project via a Netherlands-based subsidiary ICTSI Coöperatief U.A.

Its partner in the project is La Societe De Gestion Immobiliere Lengo, a concessionaire of a parcel of land intended for port use along the Congo river in the district of Mbengu, Matadi township.

ICTSI will own 60 percent of the venture, International Container Terminal Services Inc. DR Congo, while its partner will own the rest.

ICTSI DR Congo will “manage, develop and operate the … container terminal, as well as provide exclusive container handling services and general cargo services,” it said in the regulatory filing.

The facility to be constructed in Phase 1 will consist of 2 berths with a total length of 350 meters, which will service shipping lines, importers and exporters with its modern infrastructure, state of the art equipment and highly skilled staff, matching international standards.

The terminal will be able to handle 120,000 twenty-foot equivalent units (TEUs), and 350,000 metric tons, the capacity and berth length can, subject to demand, be doubled in Phase 2, it said.

Phase 1 is expected to be completed in 18 to 24 months from the start of construction, ICTSI said.

The company said ICTSI DR Congo will be initially capitalized with $12.5 million, of which ICTSI will put up $7.5 million while its partner accounts for the rest.

“The project is expected to increase ICTSI’s consolidated throughput and revenue and positively contribute to the financial performance of the company,” the ports operator added.

The company last year said it would expand its presence in Africa, Eastern Europe and Asia.

The company’s financial statement, covering the nine months to September last year, showed that profit rose 22 percent to $128.8 million while revenues reached $624.7 million, up 19 percent.