ICTSI takes over terminal project in Cameroon

Ports giant International Container Terminal Services Inc. (ICTSI) is taking over a project in Cameroon, Africa, signaling its continued expansion around the world despite the new coronavirus pandemic.

ICTSI said in a stock exchange filing on Tuesday it officially signed the concession contract for the multipurpose terminal of the Port of Kribi, Cameroon. This was done via Kribi Multipurpose Terminal (KMT), a Cameroonian subsidiary of ICTSI, and Port Autonome de Kribi. Under the concession contract, KMT will develop, operate and maintain the multipurpose facility at Kribi, a newly built deep-water port located 150 kilometers south of Douala.Phase one of the project involves 265 meters of berth and a 10-hectare yard. Phase two will expand the project with an additional 350 meters of berth and 23-ha yard.

ICTSI said the Kribi port is surrounded by the Kribi Industrial Area, a 262 square-kilometer zone being positioned as an industrial and logistical hub supporting the growing Cameroon economy and the Cameroon-Chad Corridor.

This comes even as ICTSI cuts investments for the year to about $160 million from the original budget of $270 million and reduced operating expenses.During its annual meeting last month, ICTSI chair and president Enrique Razon Jr. said the impact of the pandemic, while significant, had “not been as severe as we ourselves expected.”

He also indicated that ICTSI would continue to make new investments, including “seeking out potential acquisitions or new projects whose potential or valuation makes sense in this environment.”

During the first quarter of the year, ICTSI saw profit drop 18 percent to $59.6 million. It cited lower operating income, increase in interest on concession rights payable and COVID-19 related expenses.

ICTSI said gross revenue from port operations went down 2 percent to $375.8 million on lower trade activity and lockdown restrictions. —Miguel R. Camus INQ