Port operator International Container Terminal Services Inc. said Monday it completed the acquisition of a 34.88-percent stake in Manila North Harbor Port Inc.
ICTSI, owned by billionaire Enrique Razon Jr., said in a disclosure to the stock exchange it complied with the conditions on the share purchase agreement involving 10,499,000 shares or 34.88 percent of Petron Corp. in MNHPI. The transaction was valued at P1.5 billion.
Harbor Center Port Terminal Inc. of the Romero family owns the remaining 65-percent stake in MNHPI, which operates and maintains the Manila North Harbor, which in turn handles domestic shipments in the Port of Manila.
ICTSI earlier said the transaction would allow the company to contribute its experience, expertise and state-of the-art technology and infrastructure to enhance the operational efficiency of the domestic terminal in the Port of Manila and improve the traffic condition in Metro Manila.
Conglomerate San Miguel Corp. owns a 43.44-percent stake in MNHPI.
MNHPI won the 25-year contract to manage, develop and operate the 52-hectare seaport terminal.
The company earlier committed to invest P14.5 billion to develop the port facility. Aside from developing passenger port terminal with a capacity to serve 2 million to 3 million passengers a year, the company plans to build a container yard. The port serves close to 4,000 vessel calls annually.
ICTSI, which operates 27 terminals in 17 countries posted a net income of $103.6 million in the first half of the year, up 19 percent from last year’s $87.3 million.
ICTSI attributed the increase in net income to the expansion of the new terminal in Matadi, Democratic Republic of Congo, strong operating income contribution from the terminals in Iraq, Mexico and Brazil, and the one-time gain on the termination of the sub-concession agreement in Nigeria.
Gross revenues from port operations for the first half increased 10 percent to 603.7 million from the $550.8 million reported in the same period in 2016.
The Philippine Ports Authority in June granted the petition of MNHPI to increase cargo-handling rates by 24 percent over the next three years.
The increase, however, will not be compounded and will be based on the existing tariff rate as of Jan. 19, 2015.
PPA issued Memorandum Circular No. 4-2017 on June 19 approving an 8-percent increase under the first tranche effective July 21, 2017 or 30 days after the memo was published.
The second tranche or the second 8-percent will be implemented on July 21, 2018 while the last and third tranche will be imposed on the same date a year after.
The rate increase was lower than the proposed 37.45 percent tariff increased forwarded by MNHPI last year.
MNHPI said it had no choice but to ask for the increase considering the tremendous economic changes that adversely affected the business environment in the Philippines.
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