ICTSI terminates Nigeria port concession

MANILA, Philippines -  International Container Terminal Services Inc. (ICTSI) has decided to terminate a deal to develop and operate a container terminal in Nigeria.

In a disclosure to the Philippine Stock Exchange yesterday, ICTSI said subsidiary Lekki International Container Terminal Services LFTZ Enterprise (LICTSE) and Lekki Port LFTZ Enterprise (LPLE) have mutually agreed to terminate their sub-concession agreement dated Aug. 10, 2012.

Under the agreement, LICTSE has the exclusive right to develop and operate, and to provide handling equipment and container terminal services, at the container terminal within Lekki Port located at Ibeju Lekki, Lagos State in Nigeria for 21 years.

The termination of the agreement took effect on May 24.

 “The parties arrived at this decision following delays in the execution of the Lekki Port Project,” ICTSI said.

ICTSI said LICTSE would be paid an amount agreed by the parties for the termination of the deal.

Last March, ICTSI also announced its subsidiary ICTSI Oregon Inc. terminated the agreement with the Port of Portland for the operation of a container facility at the Port’s Terminal 6 in the US.

The 25-year lease with the Port of Portland was signed in May 2010.

A legal dispute between ICTSI Oregon and International Longshore and Warehouse Union (ILWU International) and ILWU Local 8 has affected operations at the terminal.

Established in 1988 in Manila, ICTSI is involved in port operations, management and development.

As of the first quarter, ICTSI’s net earnings reached $57.6 million, up 28 percent from $45.1 million in the same period last year.