International Container Terminal Services Inc. said Tuesday it bagged a 25-year contract to operate and develop a major container terminal in South Africa.
The port operator led by businessman Enrique Razon Jr. said Transnet SOC Ltd. declared ICTSI as the preferred bidder for the 25-year joint venture with Transnet Port Terminals to operate and further develop its flagship Durban Container Terminal Pier 2 at the Port of Durban.
Transnet SOC is a government state-owned company that owns South Africa’s railway, ports and pipelines infrastructure.
DCT Pier 2 is Transnet’s biggest container terminal, handling 72 percent of the Port of Durban’s throughput and 46 percent of South Africa’s port traffic.
The terminal has 1,760 meters of operational quay length and 120 hectares of container storage and backup area.
“Final award is subject to completion of legal agreements between Transnet and ICTSI,” ICTSI said.
ICTSI booked a net income of $154.61 million in the first quarter of 2023, or 9 percent higher than $142.28 million it earned in the same period last year.
Revenue from port operations reached $572.25 million, up by 8 percent from $528.27 million reported last year.
ICTSI handled consolidated volume of 3,102,105 twenty-foot equivalent units in the first quarter, or 9 percent more than 2,833,001 TEUs it processed in the same period in 2022.
The group’s estimated capital expenditure is about $400 million in 2023 mainly for the expansion of the company’s terminals in Australia, Mexico, Philippines and Democratic Republic of Congo.
ICTSI operates 33 terminals in 20 countries across six continents and continues to pursue container terminal opportunities around the world.