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International Container Terminal Services, Inc. applied for the renewal of its contract with the Philippine Ports Authority to operate Manila International Container Terminal beyond 2038
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ICTSI executive vice president Christian Gonzalez said they requested for early contract renewal to ensure the port operator’s investments in equipment and infrastructure in MICT are viable
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ICTSI was granted exclusive management, operation and development of MICT for 25 years starting May 18, 1988, renewed for another 25 years from May 19, 2013 until May 18, 2038
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Under PPA’s new guidelines, a holder of an existing contract for seaport management may apply for renewal when at least half of the stipulated duration of the existing contract or agreement has been completed
International Container Terminal Services, Inc. (ICTSI) has applied for the renewal of its contract with the Philippine Ports Authority (PPA) to operate Manila International Container Terminal (MICT) beyond 2038.
ICTSI executive vice president Christian Gonzalez, in an emailed statement to PortCalls, explained long-term planning is crucial for a capital-intensive venture such as port operations. “This is a highly capital-intensive business which requires significant investments in infrastructure and equipment across the entire life of a concession,” he said.
“Given the growing requirements for new more advanced technology, the need to support growth, the age of existing assets, and the need to invest further outside the terminal (roads, support access, etc.), substantial additional capital commitments are needed from now until 2037. As such, an extension has been requested to ensure that these investments are viable,” Gonzalez said.
In a recently posted notice, PPA said its Committee on Seaport Terminal Management Contract Renewal received ICTSI’s application on November 18.
ICTSI was granted exclusive management, operation and development of MICT – the group’s flagship terminal – for a period of 25 years starting May 18, 1988, renewed/extended for another 25 years from May 19, 2013 until May 18, 2038.
The application for renewal is pursuant to PPA Administrative Order (AO) No. 007-2023, which provides the new guidelines on the renewal of existing contracts on seaport terminal management services. PPA previously did not have a provision for contract renewal.
The guidelines are in line with changes under Republic Act (RA) No. 11659, or the Amended Public Service Act, and its implementing rules and regulations (IRR). Under the law, which relaxes foreign ownership restrictions in certain industries, seaports remain as public utilities.
Under AO 007-2023, a holder of a valid and existing contract or agreement for the provision of seaport terminal management services may apply for renewal when at least half of the stipulated duration of the existing contract or agreement has been completed.
The application for renewal must also be no later than three years before the expiration of the contract.
In its application dated November 18, ICTSI noted that at least half of the extended term of the contract has already been completed as of November 17, 2025.
ICTSI earlier said its expansion program for MICT includes the development of Berth 8 and other infrastructure upgrades, which increase terminal capacity and streamline operations. The port operator has also been deploying more hybrid/net zero emission equipment as part of its decarbonization strategy.
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MICT continuous investments at pace with growing volumes
Gonzalez, who was the company representative in the renewal application, said ICTSI meets the other criteria under AO 07-2023.
Further, ICTSI possesses all the qualifications and none of the disqualifications provided for under RA 11659 and its IRR, including, but not limited to, the nationality requirement.
ICTSI said it “exhibited exemplary record in the delivery of services at the subject seaport terminal (MICT) in accordance with its current Contract and latest relevant performance audit,” and has made substantial investments on infrastructure, technology or equipment for its operations under its existing contract.
The port operator noted it is compliant with revenue or remittance commitments under the current contract or agreement, and with no outstanding obligations, financial or otherwise, with PPA.
It does not have a pending case against the PPA or any of its directors or officers, in their official capacity, in any court of law or administrative body.
ICTSI has also complied with other requirements under AO 007-2023, including, submission of a business plan study covering all the core services of MICT, and payment of the non-refundable application fee of P1 million.
Under the guidelines, the Committee on Seaport Terminal Management Contract Renewal, chaired by PPA assistant general manager for finance, legal and administration Elmer Nonnatus Cadano, will evaluate whether or not the concessionaire is qualified for a renewed concession.
As part of the procedures, the notice of application for renewal of contract was published to allow all interested parties to submit their comments on the application within a period of five calendar days from the date of publication.
The Committee may recommend either returning the application if the concessionaire is found to be unqualified for renewal, or commence with the negotiation of the terms and conditions of the renewal of contract if the concessionaire is found to be qualified.
In case the concessionaire is qualified, the negotiation for the terms and conditions for the renewal of contract within 60 days will commence from the day of approval of the general manager.
If the Board disapproves, and the Committee and the concessionaire fail to agree on mutually acceptable terms and conditions one year prior to the expiration of the existing contract, all negotiations will automatically cease. – Roumina Pablo
