MANILA, Philippines - International Container Terminal Services Inc. (ICTSI) plans to expand its geographic footprint in emerging markets like Africa to diversify its revenue streams and mitigate the effect of a prolonged European economic slump.
The port operator said it is planning to acquire 10 new contracts over the next 10 years to capture emerging market opportunities. In Africa, it is looking at ports in Congo, the Ivory Coast, Cameroon and Kenya.
ICTSI is a leading port management company involved in the operations of 25 maritime terminals and port projects in 17 countries in four continents, with a combined equitized capacity of 7.89 million twenty-foot equivalent units (TEUs). It has six ports in the Philippines.
Its core business strategy is to continue to develop its existing portfolio and pursue an active program to acquire new terminal concessions in Asia, Australia, the Indian subcontinent, the Middle East, Africa, Europe and the US.
ICTSI has presence in Indonesia, Brunei, India, China, Japan, United States, Ecuador, Brazil, Poland, Georgia, Croatia, Colombia, Argentina, Mexico and Madagascar.
DA Market Securities analyst Nisha Alicer said ICTSI is set to “benefit from recent corporate acquisitions and developments while maintaining long-term growth prospects.”
The company recently increased its stake in Pakistan International Container Terminal Ltd. to 63.59 percent.
ICTSI also signed a 21-year sub-concession agreement to exclusively develop and operate the Lekki International Container Terminal in Toloram port in Lagos, Nigeria.
Targeted for completion by 2016, the Lekki port will have a 1,200-meter quay and an annual capacity of 2.5 million TEUs, making it the largest single terminal in sub-Saharan Africa.
ICSI likewise bagged a 30-year concession involving the Adriatic Gate Container Terminal, which is being primed as the international trading gateway for Central and Southeastern Europe.
The firm’s first venture in India, Kattupalli Container Terminal in Tamil, Nadu, has a 1.2-million TEU annual capacity and was scheduled to commence operations in the fourth quarter of 2012.
Last August, ICTSI bagged a 25-year contract to manage New Container Terminal 2 in Subic. It also increased its stake in Hijo International Port Services Inc. which handles 300,000 MT of cargo, primarily of banana.