International Container Terminal Services Inc. is partnering with one of Indonesia’s largest port developers for the operation and management of the former’s recently acquired facility in Jakarta, Indonesia.
On Tuesday, ICTSI said its wholly owned subsidiary PT Karwell Indonesia had signed a joint-venture deal with PT PBM Adipurusa for the operation of a significant portion of Jakarta’s Tanjung Port area.
Part of the partnership between the two firms is a deal that allows the use of several container loading and unloading equipment of ICTSI at PBM’s facility in Tanjung.
“The joint operation arrangement forms part of the initial steps aimed at establishing a joint venture between PT Karwell and PT PBM,” ICTSI said in a disclosure to the local bourse.
The joint venture to be created “will take over the operation and management of the Adipurusa terminal at the Port of Tanjung Priok,” the company said.
Earlier this month, ICTSI said it was planning to acquire a 100-percent stake in the cargo port facility at the Tanjung Port area in northern Jakarta.
“PT Karwell also plans to get bridge financing to finance its new business activities,” ICTSI said.
ICTSI chairman Enrique Razon Jr. earlier said officials were “cautiously optimistic” of the firm’s prospects for the year, even as it expands its network of operations to diversify its revenue stream. So far this year, ICTSI has acquired stakes in major cargo ports in Pakistan in the Middle East and Nigeria in Africa.
ICTSI owns or operates facilities in the Philippines, China, Ecuador, Poland, Brazil, Madagascar, Syria, Georgia, Brunei, Indonesia, Japan, India, Colombia, Argentina, Croatia, Mexico and the United States.
It posted a net income of $35.4 million in the first quarter, up by 24 percent from a year ago.