Listed global port operator International Container Terminal Services Inc. (ICTSI) has cancelled its agreement to operate and maintain a container terminal in Brunei as it rationalizes its portfolio.
ICTSI told the local bourse its wholly-owned subsidiary New Muara Container Terminal Services, SDN’s (NMCTS) services agreement with the Port Department to operate the Muara Container Terminal will no longer be renewed and will end effective February 21, 2017.
The port operator led by magnate Enrique Razon said state-owned Darusalam Assets Sdn Bhd will take over the Muara Port operations from the Port Department as part of the Brunei government’s ongoing overall restructuring.
It noted that the future plans for Muara Port contemplate its integration with the development of a Special Economic Zone, which is “not ICTSI’s core competency and will require huge investments on the part of NMCTS. “
“As part of ICTSI parent company’s efforts at rationalizing its portfolio to achieve the best possible sources of long term growth and return for its shareholders, ICTSI, through NMCTS, is no longer interested in signing a new contract with the State Owned Enterprise Darusalam Assets Sdn Bhd,” ICTSI said.
Source: Manila Bulletin (LF)
Source: Manila Bulletin