Recently, I have published the performance of International Container Terminal Services, Inc. (ICTSI) for the third quarter and the company had shown a great performance during that period. Now, the container company is letting the public know that its proposal to build an Iloilo port is moving forward, meaning, the port regulator of the country is evaluating the company’s plan. For those who don’t know about it yet, the port is a P8.7-billion proposal to be developed once approved. Truly, ICTSI is not only expanding internationally but locally as well. If you are looking for a company where you can invest, you might as well consider this one.
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The company received a letter of acceptance from the Philippine Ports Authority (PPA) for completeness in compliance with the Revised Guidelines and Procedures for Entering into Joint Venture Agreements between the Government and Private Entities. As per ICTSI, PPA will now start the evaluation of the legal, technical, and financial merits of its proposal. This signals the beginning of the 60-day period to assess the proposal of the company. We’ll just need to wait until the firm discloses an update so we can better examine our investments.
Last year, ICTSI submitted an unsolicited proposal to PPA wherein the indications include modernizing, operating, and maintaining two ports in Iloilo. The ports were named as the Port of Dumangas and Iloilo Commercial Port Complex. Per the proposal, the plan is composed of dredging and deepening of the drafts and channel to allow the direct entry of new generation, international vessels. It also includes the buying of modern quayside crane handling equipment which is estimated to cost around P1.35 billion. The PPA also disclosed previously that it couldn’t start the evaluation as there were still some details needed for the project but now that the company received the acknowledgment, for sure, the missing details have been provided
There would now be 60 days before PPA decides whether or not to provide original proponent status (OPS) for the project. If ICTSI will be given OPS, it will have the advantage of joining the Swiss challenge wherein it will join the competitive bidding process. In this Swiss challenge, third-party companies are invited in order to provide their own counterproposal to a project and the OPS has the privilege to match those proposals. It would be such an opportunity for ICTSI if the door will open for them in the Swiss challenge.