Politics

ICTSI says Mexico subsidiary undertakes expansion project

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LISTED ports operator International Container Terminal Services, Inc. (ICTSI) on Thursday said its subsidiary in Mexico recently started its third phase expansion project.

The project is expected to boost ICTSI-Contecon Manzanillo’s (CMSA) capacity to two million twenty-foot equivalent units (TEUs) from 1.4 million within the next five years, the company said in an e-mailed statement.

“Manzanillo is the most important node of international logistics in the Pacific Coast of Mexico and it will continue to be so,” CMSA Chief Executive Officer José Antonio Contreras said.

CMSA is spending $230 million on the project, mainly to upgrade shipping and terminal infrastructure, storage yards, and equipment.

The company noted that the capacity increase will position Contecon as the “largest terminal in Mexico’s Pacific coast.”

“We are convinced that this expansion, as well as the construction of land access to the northern zone of the terminal and the acquisition of new inspection equipment for Customs, will consolidate and strengthen the port’s position among competitors,” Mr. Contreras said.

“This port is designed to meet present and future needs, as well as handle 400-meter ships. If the port wins, we all win – from our clients to the families of our employees,” he added.

The project is expected to create more than 600 new direct jobs, in addition to the existing 1,200, along with 11,600 indirect jobs.

ICTSI is involved in 34 terminal concessions and port development projects in 20 countries worldwide. It has nine terminal operations in the Philippines, including an inland container terminal, a barge terminal, and combined terminal operations in Subic.

For the nine months that ended September, the company saw its net income attributable to equity holders increase by 47% to $465.1 million from $316.4 million previously.

Revenues from port operations climbed 20.1% to $1.64 billion from $1.37 billion last year. — Arjay L. Balinbin