INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said its unit in Lae, Papua New Guinea recently completed the transfer of 30% of its share to two local communities in the island country.
In a disclosure to the stock exchange on Monday, ICTSI said its subsidiary, ICTSI South Pacific Ltd. (ISPL), which owns 100% of South Pacific International Terminal Ltd. (SPICTL), forged agreements with community landowner groups Ahi Terminal Services Ltd. and Labu investment Ltd.
The agreement is for both Ahi and Labu to each acquire 15% stake of SPICTL.
“The signing of the agreements completes the transfer of the 30% of SPICTL to the local communities in compliance with the Terminal Operating Agreement,” ICTSI said.
To recall, ICTSI signed in 2017 an agreement with Ahi and Labu to establish a collaborative framework” in support of the port project in Lae.
ICTSI has 25-year concession agreements to operate ports in Lae and Motukea.
SPICTL would 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.
Under the subscription and shareholders agreement between ICTSI and the two community landowner groups, Ahi and Labu would each have a 15% share subscription in SPICTL.
SPICTL would 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 29.4% increase in its net income attributable to equity holders to $184.86 million for the nine months to September 2019. — Arjay L. Balinbin