LISTED port operator International Container Terminal Services, Inc. (ICTSI) announced on Tuesday that it had ended its operations at the Makassar Container Terminal in South Sulawesi, Indonesia.
ICTSI and state-owned PT Pelabuhan Indonesia IV (Pelindo IV) have “mutually agreed” not to renew their cooperation agreement, the Enrique K. Razon, Jr.-led company told the stock exchange.
The global port operator, through its wholly owned subsidiary ICTSI Far East Pte. Ltd., acquired the PT Makassar Terminal Services (MTS) in May 2006.
The MTS has a cooperation agreement with Pelindo IV for the procurement, installation, and operation of container loading and unloading equipment at the Makassar Port Container Terminal in South Sulawesi, Indonesia
According to ICTSI, the cooperation agreement was originally due to expire on Sep. 30, 2013, but was extended until Jan. 31 this year.
“The parties have mutually agreed not to renew the cooperation agreement. In view of the foregoing, MTS, which is one of ICTSI’s three operating subsidiaries in Indonesia, will immediately cease operations at the Makassar Container Terminal,” the company said.
It said that Makassar is the Indonesian gateway to South Sulawesi and eastern Indonesia. It facilitates Indonesia’s nickel and cocoa trade.
In the last week of 2022, ICTSI saw developments that include the signing by its subsidiary IWI Container Terminal Holdings, Inc. of an agreement to buy the ownership interest and subscription rights of Marubeni Corp., a Japan-based integrated trading and investment business, in Bauan International Port, Inc. (BIPI).
BIPI, the operator of the Bauan terminal, supports cargo movements in and out of the Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) region.
For the nine months ended Sept. 30, 2022, the company saw its net income attributable to equity holders increase by 47% to $465.1 million from $316.4 million previously.
Revenues from port operations climbed 20.1% to $1.64 billion from $1.37 billion in the previous year.
ICTSI shares closed 2.08% lower at P207.40 apiece on Tuesday. — Arjay L. Balinbin