MANILA, Philippines – Global port operator International Container Terminal Services, Inc. (ICTSI) has ended its container-handling contract in Makassar Port Container Terminal, South Sulawesi, Indonesia.
The cooperation agreement covered “procurement, installation, and operation of container loading and unloading equipment” at the Indonesian port, according to a Philippine Stock Exchange company disclosure released on Tuesday, January 31.
Originally set to expire on September 30, 2013, the cooperation agreement – which was between ICTSI subsidiary PT Makassar Terminal Services (MTS) and the Indonesian state-owned PT Pelabuhan Indonesia IV – had been extended until January 31, 2023.
Both parties have agreed not to renew the contract, publicly listed ICTSI, led by tycoon Enrique Razon Jr., said.
“In view of the foregoing, MTS, which is one of ICTSI’s three operating subsidiaries in Indonesia, will immediately cease operations at the Makassar Container Terminal,” the global port management company said.
According to ICTSI, Makassar is instrumental in facilitating Indonesia’s nickel and cocoa trade, being on the main part of the island of Sulawesi. The Sulawesi region leads the cocoa bean production industry in Indonesia, which is the third largest cocoa product processing country and sixth largest producer of cocoa beans.
ICTSI, which operates over 30 terminals in 20 countries, acquired PT Makassar Terminal Services in May 2006 for $5.6 million. – Rappler.com
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