ICTSI partners with Singapore firm for Colombia port
MANILA, Philippines - Tycoon Enrique Razon's International Container Terminal Services Inc. (ICTSI) teamed up with Singapore-based PSA International Pte. Ltd. (PSA) to build and operate a container port terminal in Colombia.
In a statement, ICTSI chairman and president Enrique K. Razon Jr. said the joint venture will develop, construct and operate the container port terminal and ancillary facilities located in the Peninsula of Aguadulce, Buenaventura, Valle del Cauca, Colombia.
The deal involves PSA's investment in Sociedad Puerto Industrial Aguadulce SA (SPIA), an indirect subsidiary of ICTSI, which holds a 30-year concession for the port project granted by the Colombian national infrastructure agency.
"We are excited about the prospect of working with PSA to develop a terminal that we know will be key to Colombia's trade growth. PSA and ICTSI share the same aspirations for the Aguadulce Port, and the opportunity to bring this shared goal to fruition presented itself. We are confident and look forward to the success of this important collaboration," he said.
Under the deal, ICTSI's wholly-owned subsidiaries Kinston Enterprises Corp. and Future Water SA agree to the purchase by PSA subsidiary PSA Colombia Pacific of SPIA shares representing 45.64% of its issued and outstanding share capital. The deal is still subject to certain conditions before it is completed.
After completing the deal, ICTSI and PSA would jointly own 91.28% of issued and outstanding share capital of SPIA.
"ICTSI and PSA will bring our complementary strengths to ensure this greenfield terminal supports the growing demand for trade and logistics in Colombia, amidst the improving business environment in the region," PSA Group chief executive officer Tan Chong Meng said.
ICTSI is a leading port management company involved in the operations and development of 27 marine terminals and port projects in 19 countries worldwide.