ICTSI Secures 25-Year MICT Concession Extension Through May 2063
Key Takeaways
- •ICTSI signed an agreement with the Philippine Ports Authority extending its MICT concession by 25 years, pushing the expiration from May 2038 to May 2063.
- •The extension exercises an option from ICTSI's original 1988 competitive tender award, resulting in approximately 75 years of continuous management of the terminal.
- •MICT handles approximately 70% of the Port of Manila's container volumes and serves as a critical trade gateway for the Philippines, where over 99% of trade by volume moves through sea routes.
- •ICTSI's Berth 8 project will add 200,000 TEUs of annual capacity, bringing MICT's total handling capacity to 3.5 million TEUs per year with the ability to service vessels up to 18,000 TEUs.
- •ICTSI operates 33 terminals across 20 countries on six continents and is chaired by billionaire Enrique Razon Jr.
International Container Terminal Services, Inc. (ICTSI), led by the Razon Group, has obtained a 25-year extension of its concession to operate the Manila International Container Terminal (MICT), keeping the Philippines' largest and busiest container terminal under its management until May 2063.
In a regulatory filing on Thursday, ICTSI said it had signed an agreement with the Philippine Ports Authority (PPA) that extends the concession by 25 years beyond its previous expiration date of May 2038.
"The renewal underscores ICTSI's long-term commitment to further developing MICT to support the continued growth of Philippine trade and the country's economic development," the company stated.
ICTSI originally won the right to operate MICT through an international competitive tender in 1988. The initial contract carried a 25-year term with the option to extend for up to an additional 25 years. The extension effectively exercises that option, securing MICT under ICTSI's management for a combined span of roughly 75 years from the original award.
MICT is one of three terminals at the Port of Manila and handles approximately 70% of the port's container volumes, making it the Philippines' largest and busiest container terminal, according to the company. The Port of Manila serves as the primary gateway for the country's international seaborne trade, an outsized role given that the Philippines is an archipelagic economy where over 99% of trade by volume moves through sea lanes.
The concession extension coincides with ICTSI's ongoing capacity expansion and infrastructure upgrades at the terminal through its Berth 8 project. Once completed, Berth 8 will be capable of accommodating container vessels with capacities of up to 18,000 twenty-foot equivalent units (TEUs), positioning MICT to handle the larger vessels increasingly deployed on major East-West trade routes.
The expansion is expected to add 200,000 TEUs of annual capacity, bringing MICT's total handling capacity to 3.5 million TEUs per year.
Announced in 2024, the second phase of the Berth 8 project involves the construction of a 300-meter wharf and a 10-hectare container yard. Berth 8 will also be outfitted with three quay cranes designed to service vessels of up to 18,000 TEU capacity. The cranes are scheduled for delivery in 2027.
ICTSI currently operates 33 terminals across 20 countries spanning six continents. The company, chaired by billionaire Enrique Razon Jr., is one of the largest terminal operators based in an emerging market and has built its global portfolio through a combination of concession wins and acquisitions across Asia, the Americas, Europe, the Middle East, and Africa.
On the local bourse Thursday, ICTSI shares closed unchanged at P980 per share. — Ashley Erika O. Jose