MANILA, Philippines – Razon-owned International Container Terminal Services Inc. (ICTSI) has partnered with CMA Terminals of France, the world’s third largest container shipping line, for its operations in Nigeria.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, ICTSI said it executed through its subsidiary ICTSI Capital BV a share purchase agreement with CMA Terminals (CMAT) of France, a member of Marseille-based CMA-CGM Group.
ICTSI expects its partnership with CMAT to help accelerate the volume ramp-up of the company’s greenfield project in the early years of its operation and establish a more stable core throughput for LICTSLE in the long run.
“The joint venture forged between ICTSI and CMAT in Lekki International Container Terminal Services LFTZ Enterprise (“LICTSLE”) is expected to further improve the viability of the project in the Lagos Free Trade Zone at Ibeju Lekki, Lagos State, Federal Republic of Nigeria,” ICTSI said through its treasury director Arthur Tabuena.
Tabuena said that under the agreement, ICTSI Capital BV will divest its 25 percent interest composed of 25,000 shares in LICTSLE worth $25,000 in favor of CMAT.
CMAT will also pay 25 percent of LICTSLE’s total debts and accrued expenses.
“The said joint venture will also reduce the investment requirement of ICTSI in LICTSLE to its pro-rata shareholding,” Tabuena said.
ICTSI announced in 2012 that it was investing $225 million to provide cargo handling equipment and information technology infrastructure at the Lekki container terminal in Tolaram Port in Lagos, Nigeria.