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ICTSI looking to expand in Southeast Asia

ICTSI looking to expand in Southeast Asia
Philippines-based leading niche ports player International Container Terminal Services Inc (ICTSI) is planning to strengthen its operations in Indonesia and Brunei as it continues to explore new opportunities in Southeast Asia, local reports said.

Philippines media quoted ICTSI vp and head of Asia-Pacific region Christian Gonzalez as saying that the company is currently negotiating for a longer term concession in Brunei and is set expand its business in Indonesia.

“We have proposed to enter into a long term concession agreement in Brunei. What we have at present is a short term renewal. We have proposed already a 20-year proposal,” Gonzalez said.

“In Indonesia, we’re proposing changes, expansion of scope, expansion of areas, these kinds of things.  The way it works in Indonesia is they have a national port operator. The national port operator gets the concession from the port authorities and then the national port operator subcontracts some of the services out to private local and foreign companies,” he added.

Gonzalez emphasized ICTSI wants to operate a terminal in Indonesia.

“You cannot drive change and create benefit if you don’t have control. That’s why we divested in India, why we divested from Japan. We want to be able to control the terminal,” he said.

Gonzalez noted that Indonesia is one of the most attractive destinations for the company “if structured the right way.”

Aside from its plan to bolster its presence in Brunei and Indonesia, Gonzalez said ICTSI is also eyeing opportunities in Cambodia and Myanmar.

“Our strategy is to look everywhere but it all depends on if the opportunity fits. At the end of the day you have to make money,” he said.

ICTSI is involved in 30 terminal concessions and port development projects in the Asia Pacific, Americas, as well as Europe, Middle East and Africa.

The company has allocated $420m in capital expenditure for 2016 to be used for the completion of the initial stage of new container terminals in Congo and Iraq, and the continuing development of a project in Australia.

“Congo is already operational, doing very well. In fact we want to fast-track development further. Australia is going to open soon. Iraq is going to open soon also, October I think. That’s the new portion of our Iraq facility. And Colombia will open in two months, finally in many years,” Gonzalez said.