MANILA, Philippines - International Container Terminal Services Inc. (ICTSI) said it has completed the takeover of a container terminal in the Port of Rijeka, Croatia’s principal seaport on the Adriatic.
ICTSI teamed up with Croatia’s largest marine services and logistics provider, Luka Rijeka, to operate and develop Adriatic Gate Container Terminal (AGCT) under a 30-year agreement.
AGCT, operator of the Bradjica Container Terminal, is ICTSI’s first venture into Croatia and the largest Philippine investment in Southeast and Central Europe.
As part of the transaction, ICTSI purchased a 51 percent stake in AGCT for 27.5 million euros.
ICTSI, together with Luka Rijeka, plans to invest over 70 million euros in the rehabilitation of the Bradjica Container Terminal to boost annual throughput capacity to 600,000 twenty-foot equivalent units.
“We have undertaken comprehensive planning over recent weeks, and will now progressively move to implement works to upgrade the terminal and its service capabilities. New quayside and landside cranage, mobile equipment, vessel planning and terminal management systems, a new terminal entrance with direct access to the highway and a wide range of other improvements are on the agenda. This is in addition to the new 300-meter deep draught quay that is under construction and scheduled to come into service early in 2013,” said Manuel Fernandez, ICTSI senior vice-president.
AGCT’s role is to function as a gateway terminal to the Balkans as a whole and to Hungary. In parallel with the development of AGCT, the Croatian rail system between Rijeka and Zagreb is to be upgraded as well as liberalized to enable rail operations to take place. These developments, together with the introduction of new simplified Euro-standard customs regulations, will complement the terminal investment and contribute to its larger role in the region.
ICTSI is a leading port management company involved in the operations and development of 23 marine terminals and port projects in 17 countries worldwide. The company was among the first international terminal operators to take its expertise overseas. ICTSI has received global acclaim for its public-private partnerships with economies divesting of its port assets to the private sector.