MANILA, Philippines – A unit of homegrown port operator giant International Container Terminal Services, Inc. (ICTSI) has initiated arbitration proceedings before the London Court of International Arbitration against its lessor in Georgia.
In a disclosure to the Philippine Stock Exchange on Friday, July 5, ICTSI said its wholly-owned indirect subsidiary Batumi International Container Terminal LLC (BICT) has filed the Request for Arbitration as part of the resolution mechanism under its lease agreement with Batumi Sea Port Ltd (BSP).
ICTSI said BICT has been sent a notice of alleged violation of the terms and conditions of the Lease Agreement by the new owners of BSP.
It did not specify what were these alleged violations as complained by JSC KazTransOil, a Kazakhstan-based oil and water transport firm that alsocontrols the nearby oil terminals in the Port of Batumi.
In 2011, JSC KazTransOil acquired and started to control BSP. That’s when ICTSI’s and BICT’s troubles began.
BICT and BSP has an agreement way back in September 20, 2007 for BICT to operate the multipurpose container terminal and dry cargo and ferry terminal in the Black Sea Port of Batumi, Georgia.
The lease agreement was a result of the concession agreement that granted to ICTSI by Batumi Port Holdings Ltd (BPHL), which had the management rights over BSP.
The Georgia operations contributed 1.3% and 1% to ICTSI’s global volume and revenues in the first quarter, the disclosure said. – Rappler.com