Philippines' ICTSI Plans $580 Million in Port Upgrades in 2025
Philippine-based International Container Terminal Services (ICTSI) has announced a major program of upgrades at key terminals around the world. After posting its most profitable year ever in 2024, with earnings of $850 million, it plans to invest $580 million in capital expenditures for 2025.
“Our balance sheet remains strong, giving us the financial strength and flexibility to pursue new opportunities and invest in existing projects,” said ICTSI in a statement.
Some of the planned projects in this round of financing include the new ICTSI terminal in Bauan, Batangas in Philippines. The construction of the Luzon International Container Terminal (LICT) was announced in October. With the funding now available, construction could begin in the second quarter. The $800 million terminal is scheduled to be completed in 2028 and will become the Philippines’ largest privately funded maritime terminal investment.
Another project planned for expansion is ICTSI’s Matadi Gateway Terminal (MGT) in the Democratic Republic of Congo (DRC). Last week, ICTSI said that it will be undertaking several key projects at the terminal this year, aimed at improving operational efficiency and customer service. One of the major initiatives is the construction of a 2.65-kilometer road linking the Port of Matadi to the national highway network. The first phase covering 1.75 kilometers was completed in June last year. The second phase began last month. Upon completion, the improved road access is expected to reduce container dwell times and streamline cargo deliveries to the port. Matadi is DRC’s main port serving the sprawling city of Kinshasa and the surrounding hinterland.
Other terminals ICTSI is targeting for upgrades include completing the Phase 3 expansion of Mexico’s Contecon Manzanillo terminal in Colima. In addition, ICTSI is also pursuing equipment upgrades in its Rio Brasil Terminal, Brazil.
Meanwhile, ICTSI is still battling with Maersk in a court case in South Africa over the operation of the Durban Container Terminal Pier 2 (DCT2). The hearing of the case proceeded in the KwaZulu-Natal High Court last week. Maersk, through its subsidiary APM Terminals, had moved to the court seeking review of Transnet’s decision to award ICTSI the concession for DCT2. APM Terminals cited irregularities in the awarding of the tender. While the case is nearing its conclusion, the terminal has been left without an operator for over one year. The concession is part of Transnet’s privatization initiative, aimed at resolving persistent port inefficiencies in Durban and other major ports across South Africa.