ICTSI raises stake in Congo terminal

MANILA, Philippines — International Container Terminal Services Inc. (ICTSI) has increased its stake in a joint venture company that operates a container and general cargo terminal in the Democratic Republic of the Congo.

ICTSI, in a stock exchange filing, said it has concluded the acquisition of an additional 10 percent stake in International Container Terminal Services Inc.–DR Congo (IDRC).

The acquisition was made through wholly owned subsidiary ICTSI Africa B.V. (IABV).

The 10 percent stake was purchased from another shareholder, La Societe D’Investissement et de Placement SARL, according to the ports giant.

The transaction has increased IABV’s ownership of IDRC from 52 percent to 62 percent.

In 2014, ICTSI forged a business partnership with SIMOBILE for the establishment and formation of IDRC.

The joint venture firm was established to build a new terminal along the river bank of the Congo River in Matadi and manage, develop, and operate the same as a container terminal, as well as provide exclusive container handling services and general cargo services.

The first phase of the project was completed in the fourth quarter of 2016.

ICTSI said development of the facility’s second phase started in the first quarter of last year and is expected to be completed in the second quarter of 2023.

The expansion project covers both yard and berth, including acquisition of port equipment.

Last year, IDRC handled 68 percent of the container volume at the Port of Matadi in the Democratic Republic of Congo.

ICTSI’s capital expenditures in the first quarter amounted to $36.3 million, which were spent mainly for the ongoing expansion at Manila International Container Terminal and ICTSI DR Congo, as well as the acquisition of port facilities and equipment at ICTSNL in Port of Onne in Nigeria.

ICTSI has earmarked a capex budget of about $250 million this year to be used for the completion of the expansion projects, equipment acquisitions and upgrades, and various maintenance requirements.