Thai Laem chabang Terminal

active

International Container Terminal Services, Inc.(ICTSI), through a subsidiary, bought into a Thai company in December 1999, which held the 30-year concession the A2 Terminal in the Laem Chabang Port in Thailand. ICTSI and subsidiary, ICTSI International Holdings Corp. (IIHC), singed a Joint Venture Agreement with Thai Laem Chabang Terminal Co. Ltd. (TLT), Ban Saen Mahanakorn Limited Partnership (BSM), Nava Inland Transport Co. Ltd. (NIT) and Repute International Ltd. (TI), enabling the ICTSI Group to invest in TLT. Under the agreement, the parties committed to increase the capitalization of TLT as may be required to fund the completion of the A2 Terminal project. Expected cost of development was US$ 31.73 million (Baht 1.2 billion). The shareholdings of the parties were: ICTSI Group 49%, BSM 33%, NIT 8% and TI 10%. It was also agreed on that TLT entered into an agreement with IIHC, whereby IIHC provided management and technical services to TLT for the development, management and operation of the A2 Terminal. IIHC held ICTSI’s interests in its foreign operations. Before the transaction, TLT was 80% owned by BSM, and 20% owned by NIT. BSM was a construction company with 18 years experience. NIT was a transportation company. TI was a Thai company owned 49% by IIHC, but was managed and controlled by IIHC. TLT was established on 12 September 1996 with an initial registered capital of US$ 7.89 million (Baht 200) million. It successfully bid for a contract granted the Port Authority of Thailand (PAT) to implement the A2 multi-purpose terminal project on a build-operate-transfer basis. The 30-year BOT contract was signed on 16 September 1996. BSM and NIT invited ICTSI to provide the resources; experience and expertise complete the construction and development of the A2 terminal project. Located within the Laem Chabang Port, the A2 Terminal was located about 110 kilometers east of Bangkok, and was seen as a gateway of transportation shipment in Indochina and for transshipment to and from Thailand. It was the only multi-purpose terminal in lame Chabang in 1999. The project was ICTSI’s first venture in Southeast Asia outside of Manila. The terminal was expected to have an annual handling capacity of 450,000 TEUs, and at least 200,000 tons of general cargo. Construction works were expected to be completed by Oct. 2001. However, in 2001, ICTSI sold its IIHC and its Mexican passenger cruise terminal to Hutchison Port Holdings, a subsidiary of Hutchison Whampoa of Hong Kong for US$ 73.2 million. The transaction, which was subject to the customary conditions, including board and regulatory approvals, was completed in June 2001. Till 2005, Hutchison Whampoa Ltd. held 88% of shares in TLT. None None