Manila South Harbour

active

Asian Terminals Inc. (P&O (33%), 7R Port Services (33%), All Asia Capital Group (33%)), incorporated in July 1986 as Marina Park Services, was granted in 1992 the exclusive right to container handling at South Harbor on a 15-year concession basis which was later extended by 6 years to 2014 with an option for another extension by 25 years. Asian Terminals is the Philippine's second biggest port operator with its South Harbour operations handling about 40% of the country's international box volume. In the adjacent North Harbor, box cargo is handled on a similar long franchise by International Container Terminal Services Inc. Asian Terminals Inc. also developed and operates Mariveles Grain Terminal (US$ 36 million), which began commercial operations on July 1, 1998 to ease congestion at the South Harbour. ATI was listed on the Manila Stock Exchange in Mitsui & Co has purchased a 7.7% stake in Asian Terminals Inc for US$ 140 million in August 1996. Asian Terminals' liabilities grew by approximately 40% from Peso3.7bn in fiscal year 1997 to Peso5.2bn in fiscal year 1998. Among its major creditors are Deutsche Bank (Peso-207.34m), Land Bank of the Philippines (Peso160m), Standard Chartered Bank (Peso-108.67m), East West Banking Corp (Peso100m) and Hongkong Bank (Peso98m). In response, Asian Terminals Inc in Oct. 1998 sought approval from the Philippine Securities and Exchange Commission (SEC) for a Peso1bn ($22.8m) rights offering. ICTSI and ATI filed petitions for further rate increases due to the Asian financial crisis, which were approved by the Philippine Port Authority, but were being challenged by shipping lines in court. In March 2006, DP World purchased the Peninsular and Oriental Steam Navigation Company (P&O) of the United Kingdom. Since this date, ATI has been controlled by DP World. In October 2007, ATI was granted a 25-year extension to its contract to manage and operate the South Harbour terminal until May 18, 2038 -immediately after its first contract expires in 2013. Under ATI's investment plan, the company committed to invest US$300.5 million between 2009 and 2022.