MANILA Philippines — Philippine port operator International Container Terminal Services Inc. was declared the “highest ranked offeror” in the recent bidding for 10-year cargo operations of the Jose D. Leon Guerrero Commercial Port in Guam. in a Dec. 7 release from the Port Authority of Guam.
In a disclosure to the Philippine Stock Exchange ICTSI said “it will be the first among three bidders to negotiate an agreement with the Port Authority of Guam to implement the terms of the proposal submitted by ICTSI.”
Other bidders were SSAT a joint venture between SSA Marine and Matson Navigation Co. and Singapore-based Portek International Ltd. The bidding was carried out to push the privatization of the Guam terminal operations and equipment maintenance. The bidding was held in July.
To carry out the Guam port project ICTSI — which operates the Manila International Container Terminal and a number of ports and terminals in South America Europe and the Middle East — has formed a new company Guam International Container Terminal Inc. The cargo operation agreement reached between ICTSI and the Port Authority of Guam will need the approval of the Guam Legislature.
The terms of the proposal however were not disclosed to the public.
In its press release in July the port authority said it expected the whole process — from the opening of the bids negotiation with the winning offeror and approval of by the Guam Legislature — to be completed by the end of December.
ICTSI also operates the Baltic Container Terminal in Poland Tecon Suape SA in Brazil and most recently a facility Toamasina Madagascar.
The company also formed a joint venture with Anglo Ports Pty. Ltd. to look for opportunities in port operations in Australia.
In November ICTSI reported a third quarter consolidated net income of 405 million pesos up 14% from the 355 million pesos ($6.57 million) earned in the same quarter last year. Its net income from January to September amounted to some 1.1 billion pesos ($20.4 million) a 34% jump from the 815 million ($15.1 million) in the same period in 2004 and slightly more than the 2004 full year net income of 1.09 billion pesos ($20.2 million).
According to Enrique K. Razon its chairman and chief executive officer the strong performance of its foreign port operations accounted for the increase in the quarter’s earnings. Foreign operations contributed 42% to the company’s third quarter bottom line higher than the 34% in the third quarter of 2004.
“ICTSI has delivered another strong quarter in what is shaping up to be a record year. The continued strong volume growth and excellent financial results at our international units have driven our results this quarter and provides tangible validation of our international expansion and diversification strategy. We are excited by the prospects of our newest facility in Toamasina Madagascar which we have successfully taken over as of Oct. 16 and will continue to pursue additional opportunities in the international marketplace ” Razon said in a press statement.
In the third quarter ICTSI invested 562 million pesos ($10.41 million) to continue to expand the handling capacity and improve the operating efficiency of its three main facilities: the MICT BCT and TSSA. Total capital investments for the first nine months of 2005 were 1.25 billion pesos ($23.15 million). ICTSI sees further investments in its facilities throughout the remainder of the year and to continue to pursue the acquisition and development of additional terminals to add to its portfolio. MBJ