ICTSI unit eyes new Subic facility

By Zinnia B. Dela Peña
The Philippine Star 02/25/2007

 

Subic Bay International Terminal Corp. (SBITC), a majority-owned unit of International Container Terminal Services Inc. (ICTSI), has proposed to operate container handling operations at the new facility to be put up by the Subic Bay Metropolitan Authority (SBMA).

In a disclosure to the Philippine Stock Exchange, ICTSI said the SBMA board has approved the revised terms and conditions of SBITC’s proposal for the management of the New Container Terminal-1 at Cubi Point in Subic.

The SBMA will now invite by publication comparative or competitive proposals for the management and operation of NCT-1. The invitation will be published for three consecutive weeks in at least two newspapers of general and international circulation. If no other proposal is received for a period of 60 working days after the last publication, SBMA will enter into a contract with SBITC on the basis of SBITC’s revised proposal.

In the event another proponent submits a proposal more favorable or more advantageous to the SBMA, SBITC shall have the right to match or better the terms and conditions of such proposal within 30 days of being notified of those terms.

If SBITC matches or betters the proposal, SBMA will enter into a contract with SBITC based on such matching proposal. If SBITC is unable to match the better proposal, SBMA will enter into a contract with the proponent who submits the better proposal. SBITC will then lose its rights to operate the container handling services at Subic.

SBITC is a joint venture company owned 15 percent by SBMA and 85 percent by Subic Bay International Terminal Holdings Inc., which in turn is 83.33 percent owned by ICTSI and 16.67 percent by Royal Port Services Inc. (RPSI).

SBITC is the current exclusive container cargo operator in Subic Bay Freeport under the concession agreement granted by SBMA on Feb. 2000.

ICTSI reported a 37 percent jump in its net profit last year to P1.845 billion from P1.35 billion in 2005, mainly driven by higher sales from overseas operations.

The company is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to 1.5 million TEU/year range. It has an experience record that spans six continents and continues to pursue container terminal opportunities around the world.

 

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