MANILA, Philippines – Enrique Razon Jr-led International Container Terminal Services Incorporated (ICTSI) is set to operate two international ports in Papua New Guinea in order to enter the Oceania market.
The listed port operator on Monday, September 25, told the Philippine Stock Exchange (PSE) that its subsidiaries signed two 25-year agreements with state-owned PNG Ports Corporation Limited to operate international ports in Motukea and Lae.
ICTSI's subsidiaries in Papua New Guinea are Motukea International Terminal Limited and South Pacific International Container Terminal Limited.
These two subsidiaries signed with PNG Ports to operate, maintain, and develop the two ports.
"The agreements and other related contracts will take effect after all the parties have complied with agreed conditions precedent," ICTSI treasury director Arthur Tabuena said in the disclosure.
The listed port operator said Motukea International Terminal will provide as well as deploy cranes, berth, and yard equipment for the Port of Motukea.
Newly developed and situated near Port Moresby, the Port of Motukea is seen to service all port and shipping activities previously done at Port Moresby.
On the other hand, South Pacific International will provide as well as deploy cranes, berth, and yard equipment for the Port of Lae.
The Port of Lae is the largest container handling facility in Papua New Guinea. Lae, capital of Morobe Province, is Papua New Guinea's 2nd largest city.
Last Friday, September 22, ICTSI announced it is buying Petron Corporation's 34.83% stake in the biggest domestic port, the Manila North Harbor, for P1.75 billion.
ICTSI and Petron on Thursday, September 21, signed a share purchase agreement for the acquisition of 10.45 million Manila North Harbor shares. These represent 34.83% of the total issued and outstanding shares of the Manila North Harbor.
ICTSI has a portfolio of 29 container terminal operations in 21 countries across 6 continents. – Rappler.com