Philippine port operator International Container Terminal Services Inc (ICTSI) has confirmed an initial $170 million investment in container terminal operations in Ecuador.
ICTSI was recently awarded a 20-year concession to operate Ecuador's port of Guayaquil on the South American west coast. This $170 million serves as an initial investment which will be spent over the first three years of its concession contract, with $80 million earmarked for equipment expenditure and infrastructure upgrades in the first year.
ICTSI subsidiary Contecon Guayaquil SA and Guayaquil port authority Autoridad Portuaria de Guayaquil (APG) signed the concession contract on May 31 this year which includes the management and operation of container and multi-purpose terminals at the port.
Under the terms of the concession contract, ICTSI will pay APG a premium of $30 million payable over the next four years, with the first $6 million already paid upon the signing on May 31.
It will also pay APG a fixed fee of $8.4 million per year, $10.40 per twenty-foot equivalent unit (TEU) and $50 per bulk tonne handled at Guayaquil's terminals during its 20-year tenure.
ICTSI officials have said that Contecon Guayaquil SA is scheduled to take over the terminals and begin operations as early as next month. ICTSI was in the news recently also for the acquisition of a 60% stake in Chinese port operator Yantai Guangtong Container Terminal Co. Ltd. At present it operates container terminals in the Philippines, Poland, Brazil, Madagascar, Indonesia, Japan and Syria.
ICTSI was recently awarded a 20-year concession to operate Ecuador's port of Guayaquil on the South American west coast. This $170 million serves as an initial investment which will be spent over the first three years of its concession contract, with $80 million earmarked for equipment expenditure and infrastructure upgrades in the first year.
ICTSI subsidiary Contecon Guayaquil SA and Guayaquil port authority Autoridad Portuaria de Guayaquil (APG) signed the concession contract on May 31 this year which includes the management and operation of container and multi-purpose terminals at the port.
Under the terms of the concession contract, ICTSI will pay APG a premium of $30 million payable over the next four years, with the first $6 million already paid upon the signing on May 31.
It will also pay APG a fixed fee of $8.4 million per year, $10.40 per twenty-foot equivalent unit (TEU) and $50 per bulk tonne handled at Guayaquil's terminals during its 20-year tenure.
ICTSI officials have said that Contecon Guayaquil SA is scheduled to take over the terminals and begin operations as early as next month. ICTSI was in the news recently also for the acquisition of a 60% stake in Chinese port operator Yantai Guangtong Container Terminal Co. Ltd. At present it operates container terminals in the Philippines, Poland, Brazil, Madagascar, Indonesia, Japan and Syria.