MANILA, Philippines - Tycoon Enrique Razon's International Container Terminal Services, Inc. (ICTSI) is teaming up with La Societe De Gestion Immobiliere Lengo (SIMOBILE) for a joint venture to develop a river port in Congo.
In a disclosure to the stock exchange, ICTSI said the joint venture company International Container Terminal Services Inc. – DR Congo will construct, invest and operate a river port, including a container terminal, in Mbengu, Matadi, Democratic Republic of Congo (DRC).
"The rationale for the transaction is to continue to expand the business and diversify geographically, and to support, participate in, and benefit from, the positive economic development in DRC," ICTSI said.
ICTSI DR Congo will have an initial capitalization of $12.5 million. ICTSI, through ICTSI Cooperatief, will invest $7.5 million in cash, while SIMOBILE will contribute a parcel of land valued at $5 million. ICTSI will own 60% of ICTSI DR Congo, while SIMOBILE will own 40%,
"It is estimated that the total capital expenditure of the project for the first 5 years will be approximately $100 million," ICTSI said.
The new terminal will be built along the Congo river bank in Matadi. ICTSI DR Congo will also manage, develop and operate the terminal, as well as provide exclusive container handling services and general cargo services.
ICTSI said Phase 1 of the project will involve the construction of 2 berths with a total length of 350 meters which will service shipping lines, importers and exporters. Phase 1 is expected to be completed within 18 to 24 months from the start of construction.
The terminal will be able to handle 120,000 TEU and 350,000 metric tons. ICTSI said the capacity and berth length can be doubled in Phase 2, depending on demand.