ICTSI locks in 26-year extension for Melbourne contract
International Container Terminal Services Inc. (ICTSI) has finalized a 26-year extension of its contract to operate a terminal at Australia’s largest general cargo and container port, allowing it to manage the facility until 2066.
In a disclosure on Friday, the Enrique Razon Jr.-led ports operator said all regulatory approvals and conditions for the deal had been satisfied as of June 25, thus putting into effect the extension of its concession at Webb Dock East in the Port of Melbourne.
This extension formalizes the agreement signed last February between ICTSI’s wholly owned subsidiary, Victoria International Container Terminal Ltd. (VICT), and Port of Melbourne Operations Pty. Ltd.
VICT’s original contract is expiring in 2040.
When the deal was first announced in February, VICT CEO Bruno Porchietto said the extension signaled the company’s long-term commitment to the Australian market.
“The extension allows us to continue investing in capacity, systems and people to support the [Victoria] State’s trade requirements over the long term, while providing shipping lines and cargo owners with greater operating continuity and certainty,” Porchietto had said.
Alongside the contract extension, VICT is carrying out an investment program scheduled for completion by late 2026 that will increase the terminal’s annual capacity to 1.6 million twenty-foot equivalent units (TEUs).
The upgrade includes a new ship-to-shore quay crane, four hybrid automated straddle carriers and the expansion of two container stacking blocks. These would enable the terminal to accommodate larger vessels, including neopanamax ships.
In late May, VICT took delivery of four Kalmar hybrid automated straddle carriers with twin-box lifting capability of up to 60 tons.
According to ICTSI, the new equipment is expected to improve energy efficiency by 40 percent while reducing annual carbon emissions by as much as 50 tons per unit.
“This investment reflects our commitment to expanding terminal capacity, improving efficiency and adopting technologies that lessen the environmental impact of our operations,” Porchietto said.
VICT currently provides about one-third of the Port of Melbourne’s container-handling capacity, equivalent to roughly 1.4 million TEUs.
ICTSI reported a 21-percent increase in first-quarter net income to $314.69 million. This was supported by an 18-percent rise in consolidated cargo volume to 4.08 million TEUs, thanks to its newly activated terminals in South Africa and Indonesia.
