On 18 September 2013, International Container Terminal Services, Inc. and PSA International Pte. Ltd., through their respective wholly-owned subsidiaries, signed an agreement which will enable them to jointly develop, construct and operate the container port terminal and ancillary facilities located in the Peninsula of Aguadulce, Buenaventura, Valle del Cauca, Colombia (the "Aguadulce Port Project").
The agreement involves PSA's investment in Sociedad Puerto Industrial Aguadulce S.A. ("SPIA"), an indirect subsidiary of ICTSI, which holds the 30-year concession for the Aguadulce Port Project granted by the Agencia Nacional de Infraestructura of Colombia.
"We are excited about the prospect of working with PSA to develop a terminal that we know will be key to Colombia's trade growth. PSA and ICTSI share the same aspirations for the Aguadulce Port, and the opportunity to bring this shared goal to fruition presented itself. We are confident and look forward to the success of this important collaboration," says Enrique K. Razon Jr., ICTSI chairman and president.
"We are delighted to partner with ICTSI and co-invest in the Aguadulce Port Project. ICTSI and PSA will bring our complementary strengths to ensure this greenfield terminal supports the growing demand for trade and logistics in Colombia, amidst the improving business environment in the region," says Tan Chong Meng, PSA Group CEO.
Under the terms of the agreement, ICTSI's wholly-owned subsidiaries Kinston Enterprises Corporation and Future Water S.A. agreed to the purchase by PSA Colombia Pacific Pte. Ltd., a wholly-owned subsidiary of PSA, of SPIA shares representing 45.64 percent of SPIA's issued and outstanding share capital, subject to the satisfaction of certain conditions precedent to completion.
Upon completion of the agreement, ICTSI and PSA, through their respective subsidiaries, will jointly own 91.28 percent of issued and outstanding share capital of SPIA. ICTSI and PSA will thereafter work jointly towards the success of the Aguadulce Port Project.