MANILA– The Philippines’ biggest port operator has begun constructing a container terminal at the Port of Buenaventura in Colombia to cash in on that country’s burgeoning trade and logistics demand.
Estimated to cost US$180 million, the terminal is a joint project of the Manila-listed International Container Terminal Service, Inc. (ICTSI) and the Port of Singapore Authority (PSA).
Through their subsidiaries, the ICTSI and PSA recently signed an agreement to jointly develop, construct and operate a terminal and ancillary facilities in Aguadulce, Buenaventura, Colombia.
Based in Manila, ICTSI is involved in the operations and development of 27 marine terminals and port projects in 19 countries worldwide.
PSA is one of the leading global port groups with port projects across Asia, Europe and the Americas and flagship operations in Singapore.
The agreement involves PSA’s investment, through unit PSA International Pte. Ltd., in Sociedad Puerto Industrial Aguadulce S.A. (SPIA), an indirect subsidiary of ICTSI.
SPIA holds a 30-year concession for the Aguadulce Port Project granted by the Agencia Nacional de Infraestructura of Colombia. It also owns 225 hectares of land in Aguadulce.
Under the terms of the agreement, ICTSI’s wholly-owned subsidiaries Kinston Enterprises Corporation and Future Water S.A. agreed to the purchase by PSA Colombia Pacific Pte. Ltd., a wholly-owned subsidiary of PSA, of SPIA shares representing 45.64 percent of SPIA’s issued and outstanding share capital.
Upon completion of the agreement, ICTSI and PSA, through their respective subsidiaries, will jointly own 91.28 percent of issued and outstanding share capital of SPIA.
ICTSI and PSA also agreed to work jointly towards the success of the Aguadulce Port Project.The new container terminal will have an annual capacity of 700,000 TEUs (twenty foot equivalent unit).
The construction, which started last November, will be completed in 18 to 24 months. The new container terminal, which is expected address Colombia’s expanding trade, will have its own access road to ease congestion at the port.
“We are excited about the prospect of working with PSA to develop a terminal that we know will be key to Colombia’s trade growth,” says Enrique K. Razon Jr., ICTSI chairman and president.
He adds PSA and ICTSI share the same aspirations for the Aguadulce Port, adding both are confident and look forward to the success of this important collaboration.
An ICTSI statement also quoted Tan Chong Meng, PSA Group CEO, as saying: “We are delighted to partner with ICTSI and co-invest in the Aguadulce Port Project.”
He noted that ICTSI and PSA will bring their complementary strengths to ensure that this greenfield terminal will support the growing demand for trade and logistics in Colombia amidst the improving business environment in the region.
ICTSI also operates container terminals in Poland, Brazil, Madagascar, Indonesia, Syria and Japan, and recently signed contracts to operate container terminals at the Port of Guayaquil in Ecuador.