MANILA, Philippines - Tycoon Enrique Razon's International Container Terminal Services Inc.(ICTSI) is investing $130 million to develop and operate container facilities at a port in Iraq.
The port giant signed a contract with the General Company for Ports of Iraq (GCPI) last April 8 for the construction and operation of three new quays and management and operation of Quay No. 20 in the Port of Umm Qasr.
Umm Qasr, the largest port in Iraq, is the main gateway to the Iraqi market. It handles liquid and dry bulk, general cargo and containers.
Under the deal, ICTSI will have the rights to manage and operate the existing container facility at berth 20 of the Port for a period of 10 years.
ICTSI would build a new container and general cargo terminal in the port for a concession period of 26 years, under a build-operate-transfer scheme.
ICTSI would also provide container and general cargo terminal services.
The port operator will invest $100 million for Phase 1 of the expansion project. From 200 meters of quay with an estimated capacity of 300,000 twenty foot equivalent units (TEUs), the facility is expected to have 600 meters of quay with an estimated capacity of 900,000 TEUs in two years.
Another $30 million will be spent for the rehabilitation of the Berth 20 terminal.