Most Actively Traded Stocks
In a span of 5 days, from June 10 to June 14, International Container Terminal Services, Inc. (ICTSI) was the third most actively traded stocks with a total of P1.809 billion or equivalent to 12.571 million shares. This is due to investors who bought the firm’s stocks as they heard the news that ICTSI has begun its terminal expansion in Port of Rijeka, Croatia that will take a year or so. The expansion will be done to cater to large vessels. On Friday last week, the firm’s shares closed at P148, 7.6% higher than the P138 o the 7th of June. While the expansion in on-going, let’s take a look at important matters regarding this project.
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The First Terminal To Accommodate Large Vessels
Investors were triggered by the expansion news of ICTSI. Since it would take a year or so to be completed by ICTSI’s subsidiary Adriatic Gate Container Terminal (AGCT), the company is expecting it to be ready by mid next year so they can start accommodating large vessels in addition to what they are catering already. Once finished, this would be the first ever terminal to harbor 20,000 twenty-foot equivalent units (TEU) ships, plus more efficient services. This ships will have a length of 400 meters overall and 59 meters as the beam. The project will have a two-phase digging scheme, of which the first phase has already been approved.
AGCT’s Financing
If you’re wondering about the financial support AGCT is getting to complete this expansion, ICTSI disclosed that the financing from this infrastructure work is being provided by the Port of Rijeka Authority and European Association. These two process all the necessary investment in quayside, the increase in the coverage of the terminal’s IT system, and the landslide handling system. It seems like the support being received the AGCT and ICTSI is enough to fulfill their project in Croatia and for the firm, it means achieving their target in terms of international expansion.
AGCT’s Capacity Expansion
AGCT will not stop at 20,000 TEUs. According to them, their capacity expansion includes increasing its terminal yard capacity to 600,000 TEUs every year in line with the increasing demands for their services. The upgraded on-dock rail yard of the said terminal is expected to be finished by the end of this year, leading to 360,000 TEUs more for its 2019 annual capacity. With regards to the Port of Rijeka, ICTSI has a 30-year contract to maintain, operate, and develop AGCT together with Luka Rijeka D.D as its partner. The investors’ movement when they heard the news about this expansion project is indeed a positive reaction that drives net foreign buying to increase significantly.
