Port operator International Container Terminal Services Inc. said Tuesday a wholly-owned subsidiary will no longer renew its contract to operate and maintain a container terminal in Brunei.
ICTSI, a Filipino company led by businessman Enrique Razon, said the services agreement between New Muara Container Terminal Services SDN Bhd and the Port Department of Brunei over the operation and maintenance of Muara Container Terminal would end on Feb. 21, 2017.
NMCTS operated the Muara Container Terminal over the past four years by extending the original service agreement annually.
“As part of the Brunei government’s ongoing overall restructuring, state-owned enterprise Darusalam Assets Sdn Bhd will take over the Muara Port operations from the Port Department effective Feb. 21, 2017,” the company said.
ICTSI said future plans for Muara Port would involve integration with a special economic zone, which is not ICTSI’s core competency and would require huge investments on the part of NMCTS.
“As part of ICTSI parent company’s efforts at rationalizing its portfolio to achieve the best possible sources of long-term growth and return for its shareholders, ICTSI, through NMCTS, is no longer interested in signing a new contract with the state-owned Enterprise Darusalam Assets Sdn Bhd.,” ICTSI said.
ICTSI posted a net income of $150.8 million in January to September, up from $143.7 million in the same period last year.
Net profit in the third quarter in 2016 jumped 53 percent to $58.2 million from $38 million in the same period in 2015.
ICTSI’s revenues from port operations rose 15 percent to $390.3 million from $339.5 million a year earlier.