Guayaquil Port Concession

active

In March 2007, a consortium of PSA Corp [Singapore] and ICTS [Philippines] was awarded a 20-year concession by the Port Authority of Guayaquil (APG) to rehabilitate and increase the capacity of a container and multi-purpose terminal in the port of Guayaquil. The terminals had a capacity of 600,000 TEU in 2006. Although seven bidders pre-qualified for the project, the winning consortium was the only one to make a final bid in December 2006. The winning consortium bid to pay APG, US$10.43 per container handled, which was 73% higher than the US$6.00 amount set in the bidding rules. The contract was signed on June 1, 2007. ICTS and PSA corp formed Contecon Guayaquil SA (CGSA) as a special purpose vehicle for the project. To expand capacity at the port, the CGSA was to invest approximately US $160 million. It was also to pay US $30 million in five annual installments of US $6 million to the port authority. The first installment was paid at contract signing. CGSA took possession of the port on August 1, 2007.