ICTSI signs deal to build, run Nigeria terminal
Philippines-based International Container Terminal Services Inc (ICTSI) has signed a contract with Lekki Port LFTZ Enterprises a 21-year sub-concession agreement for development and operation of the Lekki international container terminal in Tolaram Port, Lagos, Nigeria.
ICTSI will pour in US$225 million to provide cargo handling equipment and information technology infrastructure at Lekki container terminal, reported The Philippine Star. The $225 million forms part of the $1.4 billion being invested in the entire port development.
Slated for completion by 2016, the Lekki terminal will have a 1,200m quay and an annual capacity of 2.5 million TEUs, making it the largest single terminal in sub-Saharan Africa.
“This new concession will reinforce ICTSI’s presence in Africa and sets the standard for infrastructure developments in Africa,” said ICTSI chairman Enrique Razon during the concession signing ceremony.
Given its location within West Africa’s largest market, the Lekki port has strong potential to emerge as the region’s dominant transhipment hub.
“Lekki port is designed to cope with the current demand in the market and more importantly to fulfill future needs and expectations of our customers, the international shipping lines.
The growing requirement for increased operational and infrastructural efficiencies is a crucial factor for any company following through a growth strategy in the region,” said senior vice-president of ICTSI Africa, Jens Floc.
Last month, ICTSI completed the acquisition of a port facility located in Jakarta’s Tanjung Priok area, adding it to its growing terminal portfolio.
It also acquired stakes in major cargo ports in the Middle East and Nigeria in Africa.
The port operator has earmarked $550 million this year for its capital expenditures – more than double what it spent in 2011.
Of the total amount, about $345 million of the capital budget will go to greenfield projects in Argentina, Mexico and Colombia.
ICTSI is a leading port management company involved in the operations of 24 maritime terminals and port projects in 17 countries with six ports in the Philippines, and one terminal each in Indonesia, Brunei, India, China, Japan, United States, Ecuador, Brazil, Poland, Georgia, Croatia, Syria and Madagascar. It also has ongoing port development projects in Mexico, Colombia and Argentina.
Meanwhile, ICTSI reported consolidated first half net income attributable to equity holders of $70.3 million, up 17 percent over the $60 million earned last year.
First half revenues from port operations was $345 million, eight percent higher than the $319.1 million reported last year while earnings before interest, taxes, depreciation and amortisation (EBITDA) was $149.1 million, four percent higher.
The higher net income was mainly due to the modest growth in volume and revenues in all three geographic segments, and lower financing charges.
For the quarter ending June 30, revenue from port operations increased four percent from $164.2 million to $171.2 million. EBITDA was flat at $72.3 million from $72.1 million, and net income attributable to equity holders grew 11 percent, from $31.5 million to $34.9 million.
ICTSI handled consolidated volume of 2,697,735 TEUs in the first half of 2012, nine percent more than the 2,483,977 handled in the same period in 2011. The increase in volume was mainly due to the continued growth in international trade where the group’s terminals are located, new shipping line routes and customers, continuous containerisation of break-bulk cargo, and the full period contribution of the company’s new container terminals in Portland, Oregon, USA and Rijeka, Croatia.
Excluding the volume from the two latest container terminal acquisitions, organic volume growth was at seven percent.
Volume from the group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 74 percent of the group’s consolidated volume for the first half of 2012, increased nine percent, from 1,840,887 TEUs to 2,002,780 TEUs.
For the quarter ending June 30, total consolidated throughput was four percent higher at 1,359,419 TEUs compared to 1,312,008 TEUs in 2011.
