PHILIPPINE-LISTED International Container Terminal Services, Inc. (ICTSI) said on Tuesday that it would evaluate its right of first refusal when the Karachi terminal is tendered for a new term.
In a regulatory filing, ICTSI said that its container terminal concession in Karachi, Pakistan will revert to the port authority on June 17.
Beyond June 16, the company said its unit Pakistan International Container Terminal (PICT) has operations and management services “when and if required” by the Karachi Port Trust.
“PICT will evaluate its right of first refusal when the terminal is tendered for a new term. All non-concession assets including equipment and IT systems will remain property of PICT,” it said.
In October 2021, ICTSI through its wholly owned subsidiary ICTSI Mauritius Ltd. completed the acquisition of 15.88% of the total shares of stock in PICT for 2.7 billion Pakistani rupees or $15.6 million to increase its ownership to 80.41%.
The concession between PICT and Karachi Port Trust is for a period of 21 years or until 2023.
In the first quarter, ICTSI recorded a 3.4% volume decline from the combined Europe, Middle East, and Africa (EMEA)segment, in which Pakistan is included, to 647,390 twenty-foot equivalent units (TEUs).
From January to March, EMEA operations accounted for 20.9% of ICTSI’s consolidated volume, which was 3.1 million TEUs. — Justine Irish D. Tabile