MANILA - International Container Terminal Services Inc said Monday it will form a joint venture company in the Philippines to engage in domestic and international ocean, air and land freight forwarding and logistics.
ICTSI, through its subsidiary Abbotsford Holdings Inc partnered with Prime Alta Holdings Inc for the establishment of Fortune Logistics Corp, the Enrique Razon-led firm told the stock exchange.
"The rationale for the transaction is to reduce costs and improve operational efficiency associated with the processing of cargo that are intended to be used by ICTSI for its various operations in the Philippines," it said.
"ICTSI is also looking at potentially utilizing these services on an arm's length basis to other stakeholders and related parties of ICTSI," it added.
Based on the initial capitalization, Abbotsfod Holdings Inc will hold 51 percent ownership while Prime Alta Holdings Inc with 49 percent.
The JV will register with the Securities and Exchange Commission, the company said.