International Container Terminal Services, Inc. (ICTSI) has announced that it plans to build a new terminal in the Democratic Republic of Congo.
ICTSI, through its subsidiary ICTSI Coöperatief U.A., formed a business partnership with La Societe De Gestion Immobiliere Lengo (Simobile) for the establishment and formation of a joint venture company, International Container Terminal Services Inc. - DR Congo (ICTSI Congo DR).
The joint venture company will have an initial capital of US$12.5 million with ICTSI Cooperatief contributing US$7.5 million in cash (60%of the JV) while Simobile will contribute a parcel of land valued at US$5 million (40% of the JV).
ICTSI will build a new terminal by the banks of the Congo River in Matadi. The company will also provide exclusive container handling services and general cargo services in the port.
Enrique K. Razon Jr, ICTSI chairman and president , stated:
We have been following the positive economic developments in DRC closely and are proud that we can take part in building the needed infrastructure for the future growth and prosperity of the country
The facility will, in Phase 1, consist of two berths with a total length of 350 m and capable of handling 120,000 twenty-foot equivalent units TEU and 350,000 metric tons of cargo per year.
It is estimated that the total capital expenditure of the project for Phase 1 will be around US$100 million and it is due to start operations in 2015. This Phase 1 construction is expected to be completed in a period of 18 to 24 months. A planned second phase would double the size of the terminal.