ICTSI plows $130M as Subic terminals get fresh term

International Container Terminal Services Inc. (ICTSI), led by tycoon Enrique Razon Jr., has earmarked more than $130 million to bolster its Subic port operations after its concession agreements were extended for 25 more years.

The listed global ports operator said its subsidiaries, Subic Bay International Terminal Corp. and ICTSI Subic Inc. had received from the Subic Bay Metropolitan Authority the extension of their respective concession deals.

This means that the group will continue leading the operations and management of New Container Terminals 1 and 2 until 2058.

The fresh investments will help upgrade the civil infrastructure of the terminals, as well as provide additional equipment to increase their combined annual capacity from 600,000 twenty-foot equivalent units (TEUs) to 1 million TEUs.

These cargo facilities, located at the Subic Bay Freeport Zone in Zambales, provide a major boost to trading activities in northern and Central Luzon, given their access to shipping routes and national highways.

“The terminals support a wide range of businesses operating in the Subic and Clark Freeports, nearby economic zones and surrounding provinces, including Pampanga, Bataan, Tarlac and La Union, reinforcing its role as a vital logistics hub in the region,” it said.

ICTSI owns or operates facilities in 19 countries across the three regions, with Asia still contributing the highest in terms of port revenues.

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In the first six months, ICTSI recorded a strong financial performance, with its net income jumping 15 percent to $483.84 million. Revenue from port operations also hit $1.51 billion, 14 percent higher than a year ago, driven primarily by higher tariff rates and port volume growth.

Earnings before interest, taxes, depreciation and amortization stood at $990.54 million, up 15 percent.

Capital spending reached $231.98 million during the period, with the bulk spent to fund ongoing expansions at Contecon Manzanillo S.A. in Mexico, certain Philippine terminals and ICTSI DR Congo S.A. in the Democratic Republic of Congo.