ICTSI expands in Brazil with stake in Rio shipyard
International Container Terminal Services Inc. is poised to expand its Brazil operations INQUIRER FILE PHOTO
MANILA, Philippines – International Container Terminal Services Inc. (ICTSI), which has set a $580-million capital expenditure budget this year, is poised to expand its Brazil operations with the acquisition of a terminal property in Rio de Janeiro.
In a disclosure on Monday, ICTSI said it had acquired a 47-percent stake in Inhauma Real Estate Investment Fund, which has perpetual rights over a property intended for terminal use.
The transaction value was not disclosed.
READ: ICTSI allots $580 million for local, overseas projects
The property is a 32-hectare inactive shipyard called “Estaleiro Inhauma,” which is near ICTSI’s Rio Brazil terminal.
“In the immediate future, the said property will be used by ICTSI Rio Brazil as additional capacity for its existing operations,” the Razon-led port operator said.
‘Investment opportunity’
“The acquisition of this property represents an investment opportunity for ICTSI for the development of the area, and thus, potential expansion of the total operational and logistics capacity of the port region of Rio de Janeiro,” it added.
Last year, ICTSI Rio captured a 31-percent market share in Brazil. It facilitates shipments of motor vehicles and auto parts, minerals and stones, among others.
ICTSI executed the transaction via subsidiary ICTSI Americas BV., which operates eight terminals, including Rio. The unit also runs ports in Ecuador, Mexico, Honduras and Colombia.
Globally, the port operator has presence in 19 countries across three regions. Asia accounts for bulk of port revenues.
This year, ICTSI said it would spend its budget on port projects in Batangas, Manila, Cagayan de Oro, Mexico and Democratic Republic of the Congo.
In the Philippines, the port operator will begin constructing its $800-million seaport in Bauan, Batangas this year.
The port, which is designed to handle over 2 million twenty-foot equivalent units of cargo annually, will include 900 meters of quay and at least eight ship-to-shore gantry cranes. The completion of the first berth is targeted by the end of 2027.
ICTSI is also pouring in $100 million to upgrade the terminal capacity of Mindanao International Container Terminal Services Inc. It was granted last year a concession period of another 25 years, or until 2058, to operate the Misamis Oriental port. INQ
