Manila—(PHStocks)—International Container Terminal Services Inc. (PSE: ICT), through its subsidiary ICTSI Coöperatief U. A. (ICTSI Coöperatief), forged a business partnership with La Societe De Gestion Immobiliere Lengo (SIMOBILE) for the establishment and formation of a joint venture company, International Container Terminal Services Inc. – DR Congo (ICTSI DR Congo), for the purpose of constructing, investing in and operating a river port, including a container terminal, in Mbengu, Matadi, Democratic Republic of Congo (DRC).
ICTSI DR Congo will 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 therein.
The facility to be constructed in Phase 1 will consist of 2 berths with a total length of 350 meters which will be servicing shipping lines, importers and exporters with its modern infrastructure, state of the art equipment and highly skilled staff, matching international standards. The terminal will be able to handle 120,000 TEU and 350,000 metric tons, the capacity and berth length can, subject to demand, be doubled in Phase 2.
Phase 1 is expected to be completed within 18 to 24 months from the start of construction.
The amount of initial capitalization of ICTSI DR Congo is $12,500,000, broken down as follows:
(a) ICTSI, through ICTSI Cooperatief, will contribute cash in the amount of $7,500,000; and
(b) SIMOBILE will contribute a parcel of land valued at $5,000,000.
Based on the foregoing, ICTSI through ICTSI Coöperatief will effectively own 60% of the total shareholding in ICTSI DR Congo, while SIMOBILE will own 40% thereof. It is estimated that the total capital expenditure of the project for the first 5 years will be approximately $100 million.