ICTSI acquires 51% of Croatian port operator

ABS-CBN News

Posted at Mar 07 2011 01:10 PM | Updated as of Mar 08 2011 01:41 AM

MANILA, Philippines - Listed port operator ICTSI has bagged a 30-year contract to operate and develop a container terminal in Croatia's principal seaport, the Port of Rijeka.

ICTSI said in a statement it has tied up with Luka Rijeka D.D. for the management of the Adriatic Gate Container Terminal (AGCT), the existing operator of the Bradjica Container Terminal.

As part of the deal, ICTSI will purchase 51% of AGCT for 15 million euros.

In a separate disclosure to the Philippine Stock Exchange, Enrique Razon-led ICTSI said it would purchase the stake through Netherlands-based subsidiary ICTSI Capital BV.

"Our company is very excited by the prospect and opportunity of being partners with you in developing a world class, efficient and reliable gateway for Croatia," said Razon.

"With the investments we have planned and working with Luka Rijeka and the workforce, we will significantly improve efficiency levels at the terminal as well as expand its reach and influence across an extended hinterland," added ICTSI senior vice president Manny Fernandez.

Bradjica Terminal is currently undergoing modernization to include a new 330-meter deep draught quay and an expanded yard area which will offer the ability to provide an annual throughput capacity of 600,000 TEUs.

ICTSI said it plans to invest over 70 million euros in the initial phase of its 30-year contract.

Beyond the Croatian border, Hungary, Czech Republic, Slovakia, South Poland, Serbia and Bosnia and Herzegovina are all seen as markets for the Bradjica Terminal.

ICTSI said its stake acquisition is subject to several conditions such as shareholders and escrow agreements, approval of a Rijeka commercial court of AGCT's share capital increase, and appointment of ICTSI's representatives in the supervisory and management boards of AGCT.