ICTSI bags 30-year deal to operate Croatian port

MANILA, Philippines - Port operator International Container Terminal Services Inc. (ICTSI) has bagged a 30-year contract to manage, develop and operate a container terminal in the Port of Rijeka, a major seaport in Croatia.

In a disclosure to the Philippine Stock Exchange yesterday, ICTSI said the deal also calls for the purchase by ICTSI Capital BV, a wholly-owned unit in the Netherlands, of a 51 percent stake in the Adriatic Gate Container Terminal (AGCT) for 15 million euros.

The shares will be acquired from Luka Rijeka, a Croatian company which owns 100 percent of AGCT, the operator of the Bradjical Container Terminal in Rijeka.

ICTSI, together with Luka Rijeka, plans to invest over 70 million euros mostly in the first period of its 30-year participation in the Bradjica Terminal, which is currently undergoing an intensive modernization program to boost annual throughput capacity to 600,000 20-foot equivalent units (TEUs).

AGCT is ICTSI’s first venture into Croatia, and the largest Philippine investment in Southeast and Central Europe. 

“I would like to thank and express our deepest appreciation to the government of Croatia, the county of Primorsko-Goranska, city of Rijeka, Port of Rijeka Authority and Luka Rijeka for choosing ICTSI as its strategic partner for the modernization of the Rijeka container terminal. Our company is very excited by the prospect and opportunity of being partners with you in developing a world class, efficient and reliable gateway for Croatia,” said Enrique K. Razon Jr., ICTSI chairman and president.

For his part, Luka Rijeka president Denis Vukorepa said: “ In partnership with the experienced global terminal operator ICTSI, the container terminal port Luka Rijeka expects an increase of traffic, the opportunity to open new markets in Central and Southeastern Europe and strong logistical support.”

The project aims to improve the port’s competitiveness through the active participation of the private sector as well as link Rijeka and the Balkan region to international transport corridors. The project includes the extension of the terminal’s south quay to 330 meters and dredging of its draft to 14.5 meters.

Aside from serving Croatian trade, the terminal is being primed to be the trading gateway for Hungary, Czech Republic, Slovakia, south Poland, Serbia, and Bosnia and Herzegovina, all of which are natural hinterlands of the Port of Rijeka. The port city is also the nearest port to the emerging economic centers of Central Europe: Zagreb, capital city of Croatia; Budapest, capital city of Hungary; and Belgrade, capital city of Serbia.

ICTSI will implement its global expertise to raise the standard of service at the AGCT in line with international best practices in terminal operations. This includes intermodal rail operations and upgrade of rail facilities in coordination with other partners.

“We see a very bright future for AGCT.With the investments we have planned and working with Luka Rijeka and the workforce we will significantly improve efficiency levels at the terminal as well as expand its reach and influence,” said Manny Fernandez, senior vice-president of ICTSI.

The Port of Rijeka is located in the northern part of Kvarner Bay, where the Adriatic Sea retracts towards the European continent. It is the largest port in Croatia handling a wide variety of cargo such as ore, timber, grain, phosphate, and crude and refined petroleum products.

ICTSI is a leading port management company involved in the operations and development of 22 marine terminals and port projects in 16 countries worldwide.