ICTSI locks in Subic Bay terminals extension with $130m upgrade plan

International Container Terminal Services Inc. (ICTSI), based in Manila, has successfully obtained a 25-year extension for its concession agreements to manage Subic Bay’s two container terminals, NCT-1 and NCT-2. This agreement, finalized with the Subic Bay Metropolitan Authority (SBMA), allows ICTSI’s subsidiaries, Subic Bay International Terminals Corp (SBICT) and ICTSI Subic Inc (ISI), to operate the facilities until 2058. The extension marks a significant investment in both infrastructure and capacity enhancement for the terminals.

Major Investments and Capacity Expansion

Under the terms of the renewed contract, SBICT plans to invest over $130 million in extensive civil works and modern equipment upgrades. Key initiatives include replacing four existing quay cranes and introducing a new fifth unit, alongside the addition of hybrid rubber-tyred gantry cranes. These improvements are projected to significantly boost the terminals’ annual handling capacity from 600,000 twenty-foot equivalent units (TEUs) to one million TEUs.

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Christian Gonzalez, executive vice president of ICTSI, emphasized that this extension underscores the company’s long-term commitment to the Subic area. He stated, “Extending our partnership with SBMA reaffirms ICTSI’s commitment to support trade growth and economic development in Northern and Central Luzon. Our investments will further strengthen Subic Bay International Terminals’ position as a vital gateway.”

Strategically located within the Subic Bay Freeport Zone, these terminals play a crucial role in serving various industries across Luzon. They also provide essential access to both intra-Asia trade routes and domestic highways. By reinforcing its operations in Subic, ICTSI aims to enhance the region’s status as a competitive logistics hub in the Philippines, supporting the overall economic landscape.