LISTED port operator International Container Terminal Services, Inc. (ICTSI) on Sunday said it is expanding the Manila International Container Terminal (MICT) to meet growing demand and serve new-generation container ships.
The company is constructing a new berth at MICT to “handle increasing volume demand and serve new-generation container ships that can carry up to 18,000 TEUs (twenty-foot equivalent units),” it said in an e-mailed statement.
ICTSI noted that there is a growing trend towards larger container ships and that MICT should be ready to service very large container ships “with ease and efficiency.”
“Currently under design, Berth 8 will add a total of 400 meters quay and up to 12 hectares of yard area in phases. Along with port equipment, the expansion is estimated to cost P15 billion. Water alongside will be initially dredged to a depth of 13.5 meters with potential further deepening to 15 meters draft,” the company added.
With Berth 8, MICT’s berthing and total capacities are expected to expand by 21% and 25%, respectively.
At the same time, the company is modernizing MICT’s Berths 1 to 5 and their backup and yard areas.
“The project includes the installation of additional reefer racks by April to accommodate approximately 300 TEUs of reefer cargo,” ICTSI said.
The company is also investing in technology for MICT to improve operational efficiency and productivity.
“In 2020, MICT was among the pilot terminals in the ICTSI Group to leverage blockchain technology by joining the TradeLens platform developed by IBM and Maersk,” it noted.
ICTSI’s capital expenditures (capex) for 2022 are expected to be approximately $330 million from $165 million in 2021, the company said in its annual report released last week.
It said the estimated capex budget will be utilized mainly for the payment of concession extension upfront fees, ongoing expansion projects, equipment acquisitions and upgrades, and maintenance requirements.
“The group expects to fund these capital expenditures through a combination of available cash, internally-generated funds, third-party loans and other fund-raising activities, if necessary,” ICTSI noted.
The company saw its attributable net income for 2021 surge to $428.6 million from $101.8 million a year earlier, mainly due to higher operating income.
Its gross revenues from port operations increased 23.9% to $1.9 billion in 2021 from $1.5 billion previously.
Meanwhile, the company’s expenses were reduced 4.7% to $1.1 billion from $1.2 billion in 2020.
ICTSI handled a total of 11.16 million TEUs in 2021, higher by 10% compared with the 10.19 million TEUs handled in 2020. This is mostly due to volume growth and improvement in trade activities as economies recover from the impact of the pandemic and lockdown restrictions, the company said. — Arjay L. Balinbin