The International Container Terminal Services Inc. (ICTSI) is modernizing the Iloilo Commercial Port Complex (ICPC) in Western Visayas, transforming it into a premier gateway for the region.
The Philippine Ports Authority (PPA) has awarded ICTSI with a 25-year concession contract to develop and operate the Iloilo Commercial Port Complex (ICPC), the company announced Monday, January 29.
“Our comprehensive proposal outlines significant investments in infrastructure upgrades, cargo-handling equipment, and operational efficiency measures, all aimed at transforming the Iloilo Port into a premier gateway,” according to Christian R. Gonzalez, ICTSI executive vice president.
Already, ICTSI received PPA’s Notice of Award for its sole bid to operate the ICPC in accordance with PPA Administrative Order (AO) No. 03-2016 or the Port Terminal Management Regulatory Framework (PTMRF).
ICTSI will begin operations of the facility upon contract signing and PPA’s issuance of the Notice to Proceed.
Located at the heart of Iloilo City, ICPC serves the province of Iloilo and and the entire Panay Island, in Western Visayas of the Philippines.
It is located away from the older port facilities on the Southern coast of Panay Island, in Panay Gulf.
It is one of the country’s safest and most natural harbors with Guimaras Island shielding the port from storms and making it ideal for harboring ships and vessels.
Visayas Container Terminal (VCT), the future name of the facility after handover to ICTSI – is a critical gateway for trade in the Western Visayas.
However, capacity efficiency constraints have hampered its full potential. ICTSI’s involvement aims to tackle these challenges head-on, unlocking the port’s economic engine.
VCT has 627 meters of operational quay length and 20 hectares of land for container and general cargo storage, warehousing, and other cargo-handling activities.
Upon signing of the contract, ICTSI will focus on improving terminal productivity and service quality by investing in the development and rehabilitation of the terminal infrastructure and the deployment of cargo-handling equipment.
Former Senate President Franklin Drilon, a native of Iloilo, expressed bullishness about the PPA’s decision to grant a contract for the re-development of VCT to ICTSI.
“ICTSI is well-positioned to efficiently manage the ports and address the longstanding congestion issues which have deterred potential investors,” he noted.
Transforming VCT into a modern, world-class port facility and accommodating more domestic and international shipments will position Iloilo as a key driver of economic progress in the Philippines, Drilon concluded.
International Container Terminal Services, Inc. (ICTSI) committed to achieve net zero greenhouse gas (GHG) emissions for its Scope 1 and 2 emissions by 2050 for a sustainable future.
“Our commitment to decarbonization targets marks an important step on our journey to becoming a more sustainable company,” according to Christian R. Gonzalez, ICTSI Executive Vice President, Compliance Officer and Chief Sustainability Officer.
“As part of this, we are actively implementing initiatives to maximize energy and resource efficiency, reduce carbon intensity, and lower emissions.”
Furthermore, ICTSI pledged to reduce its GHG emissions directly from its operations (Scope 1) and purchased electricity (Scope 2) by 26 percent per container move by 2030, benchmarked against a 2021 baseline – a significant step towards net zero by 2050.
The company is actively evaluating emissions across its entire value chain (Scope 3) and will develop an inventory by 2025, followed by a target review.
These targets will be regularly reviewed and updated in alignment with evolving climate science, ensuring that ICTSI stays at the forefront of adaptation and mitigation efforts.
ICTSI has already achieved carbon neutrality in four terminals in the Americas – Contecon Guayaquil in Ecuador, Contecon Manzanillo in Mexico, and Tecon Suape and Rio Brasil Terminal in Brazil – representing a significant quarter of the Group’s total volume handled.
This accomplishment, alongside the deployment of 48 hybrid RTGs across its network, including 40 at the company’s flagship Manila International Container Terminal; two each at Mindanao Container Terminal in Misamis Oriental and South Pacific International Container Terminal in Lae, Papua New Guinea; and four at Matadi Gateway Terminal in D.R. Congo, underlines ICTSI’s move to reduce its environmental impact.
“Making a positive environmental impact is fundamental to our business strategy which means we will continuously review and update our goals to ensure their relevance and accelerate our efforts towards mitigating climate change,” Gonzalez concluded.
Rio Brasil Terminal (RBT), International Container Terminal Services, Inc.’s (ICTSI) business unit operating at the Port of Rio de Janeiro in Brazil, recently welcomed the inaugural call of the Sirius/Neo Bossa service jointly operated by CMA CGM and Maersk.
The start of the weekly service in RBT was marked by the arrival of the 9,000-TEU Maersk Lota followed by the 10,000-TEU CMA CGM Columbia.
The service has the following port rotation: Algeciras (Spain) – Tanger Med (Morocco) – Salvador (Brazil) – Rio de Janeiro (Brazil) – Santos (Brazil) – Itapoá (Brazil) – Paranaguá (Brazil) – Santos (Brazil) – Itaguaí (Brazil) – Tanger Med (Morocco ) – Algeciras (Spain).
Through the transshipment hubs of Tanger Med and Algeciras, the Sirius/Neo Bossa service connects Europe and the Mediterranean to the East Coast of South America.
The service offers fast transit time and serves as the best import option for customers in Rio de Janeiro and Minas Gerais with an opportunity to reach ports and markets of Eastern and Western Mediterranean and Southern Europe.
International Container Terminal Services, Inc. (ICTSI) reported US$1.76 billion revenues from port operations for the nine months of 2023, seven percent up from the same period in 2022.
The company’s net income also increased four percent to US$484.54 million due to higher operating income and interest income, and lower COVID-19-related expenses.
This was partially tapered by nonrecurring impairment of goodwill attributed to Pakistan International Container Terminal (PICT) in the previous quarter and increases in depreciation and amortization, interest on loans, lease liabilities and concession rights payable.
Excluding the impairment of goodwill attributed to PICT, net income attributable to equity holders would have grown six percent to US$495.15 million.
Diluted earnings per share increased six percent to US$0.227 in 2023 from US$0.215 in 2022.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reaxged US$1.11 billion, seven percent higher than the US$1.04 billion generated the same period last year.
“These results were delivered against some very strong prior year comparatives,” says Enrique K. Razon, ICTSI Chairman and President.
Despite a challenging macro-economic and geo-political environment ahead, “We remain confident in the resilience of ICTSI’s diverse portfolio. Our strategy as an independent port operator supported by our cost and operational discipline means we are well-positioned for the rest of the year, as well as over the longer term.”
For the quarter ended September 30, 2023, revenue from port operations increased three percent from US$576.70 million to US$594.88 million; EBITDA was three percent higher at US$377.85 million from US$365.85 million; and net income attributable to equity holders marginally increased to US$170.74 million from US$170.66 million in the same period in 2022.
Diluted earnings per share for the third quarter of 2022 and 2023 were flat at US$0.080.
ICTSI handled consolidated volume of 9,451,912 twenty-foot equivalent units (TEUs) in the first nine months of 2023, seven percent more compared to the 8,856,303 TEUs handled in the same period in 2022.
The increase in consolidated volume was mainly due to the contribution of Manila North Harbour Port, Inc. (MNHPI) in Manila, Philippines that was consolidated starting September 2022, and new services at certain terminals; tapered mainly by the impact of the expiration of concession contract at PICT in Karachi, Pakistan; cessation of cargo handling operations at Makassar Terminal Services (MTS) in Makassar, Indonesia and Davao Integrated Port and Stevedoring Services Corporation (DIPSSCOR) in Davao, Philippines; and slowdown in trade activities at certain terminals.
Excluding the contribution of MNHPI, PICT, MTS and DIPSSCOR, consolidated volume would have marginally increased by one percent. For the quarter ended September 30, 2023, total consolidated throughput was two percent higher at 3,176,076 TEUs compared to 3,103,721 TEUs in 2022.
Gross revenues from port operations for the first nine months of 2023 increased by seven percent to US$1.76 billion compared to the US$1.64 billion reported in the same period in 2022 mainly due to the contribution of MNHPI and new businesses at IRB Logistica in Brazil; tariff adjustments, volume growth and higher revenues from ancillary services and general cargo business at certain terminals; and favorable translation impact mainly of Mexican Peso (MXN)- and Iraqi Dinar (IQD)- based revenues at Contecon Manzanillo S.A. (CMSA) and ICTSI Iraq, respectively, and Brazilian Reais (BRL)- based revenues at Tecon Suape S.A. (TSSA) and ICTSI Rio in Brazil; partially tapered by slowdown in trade activities at Victoria International Container Terminal (VICT) in Melbourne, Australia, and the expiration of the concession contract at PICT; and unfavorable translation impact mainly of Philippine Peso (PHP)-, Australian Dollars (AUD)- and Nigerian Naira (NGN)- based revenues at Philippine terminals, VICT in Australia and International Container Terminal Services Nigeria Ltd. (ICTSI Nigeria) in Port of Onne, Nigeria, respectively.
Excluding the contribution of MNHPI, and impact of new and discontinued businesses, consolidated gross revenues would have increased by five percent for the nine months ended September 30, 2023. For the third quarter of 2023, gross revenues increased three percent from US$576.70 million to US$594.88 million.
Capital expenditures, excluding capitalized borrowing costs, amounted to US$233.58 million for the first nine months of 2023.
These were mainly for ongoing expansions and acquisition of equipment at CMSA in Manzanillo, Mexico, Manila International Container Terminal (MICT) in the Philippines , VICT in Melbourne, Australia, and ICTSI DR Congo S.A. (IDRC) in Matadi, Democratic Republic of Congo.
The Group’s estimated capital expenditure for 2023 is approximately US$400 million.
The estimated capital expenditure will be utilized mainly for the ongoing expansion at the Company’s terminals in Mexico, Australia, Philippines and Democratic Republic of Congo; second tranche of concession extension related expenditures in Madagascar; yard expansion at ICTSNL in Nigeria; quay expansion at ICTSI Rio in Brazil; development of a recently acquired terminal in East Java in Indonesia; equipment acquisitions and upgrades; and for capital maintenance requirements.
TECHNOLADY 