INTERNATIONAL CONTAINER Terminal Services, Inc. (ICTSI), through its subsidiaries, secured a 25-year extension of its concession agreements for the management and operation of New Container Terminals (NCT) 1 and 2 in Subic, Zambales, and will invest more than $130 million to upgrade the facilities.
In a stock exchange disclosure on Monday, ICTSI said its units Subic Bay International Terminals Corp. (SBITC) and ICTSI Subic, Inc. (ISI) received the extensions from the Subic Bay Metropolitan Authority (SBMA), allowing them to operate NCT-1 and NCT-2 until 2058.
ICTSI Executive Vice-President Christian R. Gonzalez and SBMA Chairman and Administrator Eduardo Jose L. Aliño signed the agreements on Oct. 3 at ACEA Subic Beach Resort. The signing was witnessed by SBITC Vice-Chairman Juan Miguel Delgado and SBMA Director and Ports Committee Chairman Honorio Allado III.
Under the extended concession, SBITC will invest over $130 million in civil infrastructure and additional equipment.
The upgrades include replacing four existing quay cranes, acquiring one additional crane to bring the total to five, and adding more hybrid rubber-tired gantry cranes.
ICTSI expects these improvements to enhance terminal efficiency and raise the combined annual capacity of NCT-1 and NCT-2 to one million twenty-foot equivalent units (TEUs) from 600,000 TEUs.
“Extending our partnership with SBMA reaffirms ICTSI’s long-term commitment to support trade growth and economic development in Northern and Central Luzon. Our investments will further strengthen Subic Bay International Terminals’ position as a vital gateway, ensuring it remains a competitive and efficient logistics hub well into the future,” Mr. Gonzalez said.
Situated within the Subic Bay Freeport Zone, the terminals provide direct access to major intra-Asia shipping routes and national highways. They serve industries and businesses operating within the Subic and Clark freeports, nearby economic zones, and surrounding provinces including Pampanga, Bataan, Tarlac, and La Union.
Established in 1987, ICTSI operates 33 terminals in 20 countries across six continents.
For the second quarter, the company’s attributable net income rose 15.97% to $244.31 million, driven by sustained earnings across all port operations.
Gross revenues increased 11.8% to $764.63 million from $684.03 million in the same period a year ago, while combined expenses rose 12.4% to $344.68 million from $306.66 million previously.
On Monday, shares of ICTSI closed P4 lower, or down 0.78%, at P508 apiece on the local bourse. — Ashley Erika O. Jose