Philippines-based terminal operator, International Container Terminal Services Inc. (ICTSI), announced it will spend US$330m to expand and enhance its facilities in Manila and Subic Bay.
The funds will go to Manila International Container Terminal (MICT) and the new Container Terminals 1 and 2 at Subic Bay in Zambales, Philippines, where the company wants to increase capacity and attract more shipping lines.
Spending will be frontloaded next year, partly in response to the recent congestion in Manila, although the deployment of some equipment may take up to three years – two ship-to-shore cranes will arrive in three years.
The company has already invested US$12m in six rubber tyred gantry cranes (RTGs) to be sent to both ports by the third quarter next year.
At the Asia CEO Forum, Christian Gonzalez, ICTSI vice president and MICT general manager, said: “We have not yet decided how many we are deploying in Manila and in Subic. That will come down to market demand. If the demand falls in Subic, we will give the additional to Manila.”
ICTSI’s medium term aims to develop the Laguna gateway container terminal into an inland container depot, complete 12 hectares of land for MICT, or what it now calls Berth 7 and expand the berths in Subic Bay to cater to larger ships.
The Business Mirror quoted Gonzalez as saying: “With Subic you have literally no infrastructure expansion. So it will only be equipment and a relatively small portion [of investment]. What you do in Subic is that you continue to have two berths for the big ships and you don’t really need to extend the pier, itself. We’ll see how we can develop it depending on the market.”
He continued: “To get to 50% [capacity utilization], a lot of things need to happen. We need to encourage more businesses to move there. That’s more important. If you have a port, that doesn’t mean you will always have the necessary volume. It doesn’t work that way.”
Also announced today was an award for ICTSI, selected by UK-based World Finance magazine for its “exceptional work in sponsoring a wide variety of deals.”
Eight ICTSI projects including MICT were highlighted as the firm took home the Sponsor of the Year award at the Project Finance Deals of the Year 2014.