INTERNATIONAL Container Terminal Services, Inc. (ICTSI) recently forged an agreement with community landowner groups in Lae, one of two cities where it will operate ports in Papua New Guinea.
In a statement, the port operator said ICTSI Foundation and ICTSI subsidiary South Pacific International Container Terminal, Limited (SPICTL) signed the memorandum of agreement (MoA) with AHI Investments Ltd. (AHI) and Labu Holdings Ltd. (LABU) which “establishes a collaborative framework” in support of the port project in Lae.
ICTSI last September signed 25-year concessions to operate ports in Lae and Motukea. SPICTL will handle the deployment of cranes and other equipment at Port of Lae, the largest container handling facility in Papua New Guinea. Lae is the second largest city in the country.
“We are committed to developing the new Lae terminal into a world class facility and the best in South Pacific. We will not only be investing in ship-to-shore gantry cranes and the highest levels of information technology but, most importantly, into training and human capital,” Christian R. Gonzalez, ICTSI senior vice-president and head of Asia Pacific, was quoted as saying in a statement.
ICTSI said the MoA affirms the subscription and shareholders agreement included in the Terminal Operating Agreement with the PNG Ports Corporation Limited for the Port of Lae.
Under the SSA, AHI and LABU will each have a 15% share subscription in SPICTL. SPICTL will also hire workers from AHI and LABU, as well as undertake projects to benefit host communities.
The company, led by tycoon Enrique K. Razon, Jr., reported a 5% increase in net income attributable to equity holders to $149.3 million for the first nine months of 2017, from $141.9 million during the same period a year ago.
