Port of Toamasina

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In June 2005, International Container Terminal Services, Inc. (ICTSI) granted a 20 year concession with state-owned Societe de Gestion du Port Autonome de Toamasina (SPAT) for the operation, management, financing, rehabilitation, and development of the container terminal in the Port of Toamasina in Madagascar on a public-private partnership basis. The Port of Toamasina was Madagascar’s main port. The Madagascar International Container Terminal (MICT) handled over 90 percent of the country’s container traffic in 2004. The concession contract was granted through a competitive bidding process in which the winning bid was selected based on the highest royalty fee per 20-foot container handled. In addition to International Container Services Inc (ICTSI), three other bidders were pre-qualified: AP Moller Finance, Hutchison Port Holdings, and the consortium of Malta Freeport. The concession contract was signed on October 16, 2005. ICTSI through its subsidiary Madagascar International Container Terminal Services Limited (MICTSL) took over the operation of the container terminal on October 17, 2005. The 20 year concession included the performance objectives and granted exclusivity of container operations until the concessionaire reach the level of 400,000 TEU. The container traffic was 104,000 TEU in 2004. Under the concession contract, the concessionaire committed: 1. To pay an entry fee consisting of an initial payment of Euro 5 million (US$6.25 million) to SPAT, the port authority towards to purchase equipment from port, reimburse the government transaction in development cost, and operating budget of SPAT; 2. To pay an additional Euro 5 million (US$6.25 million) during the first three year for container cranes; 3. To undertake mandatory rehabilitation and construction works whose cost were estimated at Euro 10 million (US$12.5 million). 4. To provide project company (MICTSL) with a minimal equity of Euro 5 million (US$6.25 million). In sum, the concessionaire committed to invest at least US$12.5 in rehabilitation and construction work and to pay at least US$12.5 million in entry fee and other fees. The addition fees (royalties) were calculated as a share of the container traffic (fee per 20-foot container handled). This concession represented a breakthrough for Madagascar to equip with improved container handling facilities. It was designed to facilitate Madagascar’s growing international trade. This project also was expected to improve efficiency and capacity of the terminal which lowering the cost of Madagascar's goods sent to market. The concession documents specified the obligations and risks that were shared between the private operator (ICTSI) and the newly-established landlord port authority of Toamasina, the Societe de gestion du Port Autonome de Toamasina(SPAT). In July 2007, Madagascar International Container Terminal Services Ltd completed a US$30 million modernisation programme aimed at revitalising the port. The upgrade focused on container-handling equipment, infrastructure and information technology. http://www.ictsi.com/ http://madagascar.ictsi.com/