ICTSI enters freight forwarding business

MANILA, Philippines — Razon-led International Container Terminal Services Inc. (ICTSI) has entered into a P25-million joint venture deal with a Pampanga-based firm to put up a freight forwarding company.

In a regulatory filing, ICTSI said that its subsidiary, Abbotsford Holdings Inc. (AHI), partnered with Prime Alta Holdings Inc. (PAH) for the establishment of a freight forwarding joint venture  to be named   Fortune Logistics Corp.

ICTSI expects regulators to issue the permits and licenses of Fortune Logistics within two months from the signing of the shareholders’ agreement for the joint venture. The joint venture will be headquartered in  Manila

Based on the disclosure,  AHI will invest an initial subscription of P12.75 million for a 51 percent stake in  Fortune Logistics. On the other hand, PAH will invest P12.25 million for the remaining 49 percent.

“Based on the foregoing, ICTSI, through Abbotsford Holdings Inc., will effectively own 51-percent of the total shareholdings in the joint venture company,” ICTSI said.

According to ICTSI, the transaction will minimize costs and improve efficiency on the processing of cargo to be used by ICTSI for its various operations nationwide.

In April, ICTSI chairman Enrique Razon Jr. said the firm would pursue its expansion projects, even as global trade faces yet another disruption with the Ukraine-Russia war.

ICTSI doubled its capital expenditures to $330 million for 2022 from $165 million in 2021 to fund the completion of port construction and upgrades here and abroad.

As of June, ICTSI’s net income  jumped by 50 percent to $294.5 million from $196.7 million a year ago.