Listed port operator International Container Terminal Services Inc. (ICTSI) said it is halving its capital expenditure (capex) budget this year, citing the resultant slowdown in activities brought about by the global economic crisis.
ICTSI said it will only allot P2.46 billion for operational expenses in 2009, mainly to construct the new Berth 6 at the Manila International Container Terminal (MICT) and purchase of new equipment so the company’s older gantry cranes can be retired.
“This capex amount is actually probably half of what it would have been before we were talking of this tariff increase a few months ago,” Christian Gonzalez, MICT general manager, said.
“[With the global economic downturn,] we have to change the original completion date which is supposedly [set] this year to some time in the later future,” Gonzalez added.
ICTSI’s investments also involve acquiring eight new rubber-tired gantries and upgrading of 15 existing gantry cranes in order to increase port capacity to handle more containers.
ICTSI shares ended at P10.25 in yesterday’s trading, down 2.38 percent from Friday’s close.
Gonzalez, however, did not state which phase in the construction of Berth 6 will be delayed but said they need to start the construction of the facility to be able to handle more containers some two to three years later or when the economic crisis tapered off.
ICTSI said earlier commercial operation of the new berth is expected by 2010, but this may be moved to a much later date.
The investments already received certification from the Board of Investments for tax perks, but Gonzalez said they will only reap such benefits after the terminal has been completed.
The Philippine Ports Authority, the government corporation especially charged with the financing, management and operations of public ports in the country, earlier said ICTSI may delay several planed investments in the port as a result of the global economic slowdown. It has been observed that cargo volumes have gone down by double-digit rates since the middle of last year.
ICTSI was supposed to spend about $100 million (around P4.9 billion), for the Berth 6 project that would add annual capacity by about 500,000 TEUs (twenty-foot equivalent units).
According to original plan, Berth 6 will require reclamation of some 23.4 hectares of land north of MICT, and construction of a cement wharf to meet the high demand in containerized traffic in the port.
With the new berth, ICTSI can service containerized cargo of post Panamax-class vessels of up to 85,000 dead weight tons. The planned wharf can support the rail mounted post-Panamax container cranes and five 12-meter draft berthing slots, the plan said.
For the past three years, ICTSI has invested nearly P3 billion to further expand and improve the terminal. These improvements include the installation of a central gate, expansion of the container yard, purchase of additional cargo-handling equipment, installation of additional weighing bridges and modernization of its information technology systems.
ICTSI said it will only allot P2.46 billion for operational expenses in 2009, mainly to construct the new Berth 6 at the Manila International Container Terminal (MICT) and purchase of new equipment so the company’s older gantry cranes can be retired.
“This capex amount is actually probably half of what it would have been before we were talking of this tariff increase a few months ago,” Christian Gonzalez, MICT general manager, said.
“[With the global economic downturn,] we have to change the original completion date which is supposedly [set] this year to some time in the later future,” Gonzalez added.
ICTSI’s investments also involve acquiring eight new rubber-tired gantries and upgrading of 15 existing gantry cranes in order to increase port capacity to handle more containers.
ICTSI shares ended at P10.25 in yesterday’s trading, down 2.38 percent from Friday’s close.
Gonzalez, however, did not state which phase in the construction of Berth 6 will be delayed but said they need to start the construction of the facility to be able to handle more containers some two to three years later or when the economic crisis tapered off.
ICTSI said earlier commercial operation of the new berth is expected by 2010, but this may be moved to a much later date.
The investments already received certification from the Board of Investments for tax perks, but Gonzalez said they will only reap such benefits after the terminal has been completed.
The Philippine Ports Authority, the government corporation especially charged with the financing, management and operations of public ports in the country, earlier said ICTSI may delay several planed investments in the port as a result of the global economic slowdown. It has been observed that cargo volumes have gone down by double-digit rates since the middle of last year.
ICTSI was supposed to spend about $100 million (around P4.9 billion), for the Berth 6 project that would add annual capacity by about 500,000 TEUs (twenty-foot equivalent units).
According to original plan, Berth 6 will require reclamation of some 23.4 hectares of land north of MICT, and construction of a cement wharf to meet the high demand in containerized traffic in the port.
With the new berth, ICTSI can service containerized cargo of post Panamax-class vessels of up to 85,000 dead weight tons. The planned wharf can support the rail mounted post-Panamax container cranes and five 12-meter draft berthing slots, the plan said.
For the past three years, ICTSI has invested nearly P3 billion to further expand and improve the terminal. These improvements include the installation of a central gate, expansion of the container yard, purchase of additional cargo-handling equipment, installation of additional weighing bridges and modernization of its information technology systems.