International Container Terminal Services (ICTSI) has reported its unaudited consolidated financial results for the quarter ended March 31, 2016, posting revenue from port operations of US$266.5 million, a decrease of 10% from the $296.1 million reported for the same period in 2015.
The decline in earnings was mainly driven by lower storage and ancillary revenues, unfavorable container volume mix, lower capitalised borrowing cost, higher depreciation and amortisation expenses and start-up costs of new terminals and projects.
ICTSI handled consolidated volumes of more than two million TEU for the quarter ended March 31, 2016, which was 4% more than the more than 1.9 million TEU handled in the same period in 2015.
The increase in volume was mainly due to the acquisition of new shipping line customers and services at the company’s terminals in Guayaquil, Ecuador, Manzanillo, Mexico, and Karachi, Pakistan.
Improvement in trade activities at the company’s terminals in Jakarta, Indonesia and most Philippine ports also contributed to increased volumes.
The decline in gross revenues was tapered by tariff rate adjustments and new contracts with shipping lines and services at certain terminals, and the continuing ramp-up at ICTSI Iraq.
ICTSI recently invested $20 million in the development of SPIA, its joint venture container terminal development project with PSA International in Buenaventura, Colombia.
The company’s share for 2016 to complete the initial phase of the project is approximately $60 million.
Fact File: ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to 2.5 million TEU/year range. ICTSI has an experience record that spans four continents and continues to pursue container terminal opportunities around the world.