ICTSI units bag 25-year concession extension for Subic terminals

One of the companies will invest over $130m for the improvements.

International Container Terminal Services, Inc. (ICTSI) subsidiaries have secured a 25-year extension of their respective concession agreements with the Subic Bay Metropolitan Authority (SBMA) for the continued operation and management of New Container Terminals 1 and 2.

The extensions, which run until 2058, were secured by Subic Bay International Terminals Corp. (SBICT) and ICTSI Subic Inc. (ISI), ICTSI said in a statement.

The Subic Bay International Terminals, located within the Subic Bay Freeport Zone, provide direct access to major intra-Asia shipping routes and national highways. The terminals serve a broad range of industries and businesses operating within the Subic and Clark freeports, nearby economic zones, and the surrounding provinces of Pampanga, Bataan, Tarlac, and La Union.

SBITC will invest more than $130m in civil infrastructure and additional equipment as part of its investment and development plan under the extended concession. These will include the replacement of the terminal’s four existing quay cranes and acquisition of one additional quay crane, increasing the total to five, as well as the integration of more hybrid rubber-tired gantry (RTG) cranes.

These investments will further enhance terminal capabilities, boost operational efficiency, and increase the combined annual capacity of both terminals from 600,000 twenty-foot equivalent units (TEUs) to one million TEUs.