Company Announcement - World Finance, a leading financial magazine based in the United Kingdom, has cited International Container Terminal Services, Inc. as among the Project Finance Deals of the Year 2014 “The World’s Best Infrastructure Projects.” Released in a supplement, World Finance presents Project Finance, together with the publication’s November – December 2014 issue, the best project finance index compiles the most impressive infrastructure projects and deals in the world. “From solar plants and roadways to refinancing and restructuring deals, these projects stand out in their fields.  Good infrastructure project proposals need to consider a multitude of factors, including, but not limited to, financing, timing, environmental impact and socioeconomic change,” says World Finance in its introduction on the awards.

“The projects and deals have gone the extra mile to satisfy all parties, and to ensure that work is carried out responsibly at all stages, and in all contexts,” it added. A total of 17 project finance deals were cited by the publication with ICTSI receiving the Sponsor of the Year Award.  The company was recognized for its “exceptional work in sponsoring a wide variety of deals.”  It also described ICTSI as choosing to “embrace the pathway to global expansion.” Martin O’Neil, ICTSI Senior Vice President and Chief Financial Officer, received the award from Jenny Hammond of World Finance at the London Stock Exchange.

The index highlighted eight ICTSI projects:

• Contecon Manzanillo, Mexico
• Webb Dock East – Melbourne, Australia
• Puerto Cortes, Honduras
• ICTSI Cooperatief – Matadi, DR Congo
• Lekki Deep Water, Nigeria
• Toamasina – Madagascar International Container Terminal
• Karachi – Pakistan International Container Terminal
• Manila International Container Terminal, Philippines

“Although each comes with its own unique set of requirements, all ask for a degree of financial flexibility for ICTSI to deliver to the fullest,” the magazine said. The projects include new concessions offered on a build-operate-transfer basis, takeover and upgrade of existing businesses including those with a strong BOT element on a concession basis, the development of a container terminal facility on a sub-concession basis, and the acquisition of a publicly listed company. World Finance continues:  “After years spent consolidating and expanding operations, ICTSI’s portfolio amounts to an impressive 29 terminals in 21 countries.  The projects offer a brief insight into the company’s international ambitions and proven ability to manage complex financial dealings.” In an interview with Ms. Hammond, Mr. O’Neil said that for a private operator like ICTSI, the basic structure is a concession lease:  “Port authorities are reluctant to actually let go of ownership of these assets for understandable reasons, and what they do is give us a 25 year lease to work on the facility, operate it, take responsibility for all the capital investment, the maintenance of the equipment, and to generate an efficient service.  At the end of the 25 year lease, what the contract will say is that actually all the assets revert to the port authority, so we’re really a long term tenant and operator of these facilities.”

He adds:  “The issues are common across many of these ports, so we’re often solving a problem we’ve solved somewhere else, which helps.  There is a local component, it’s very important.  In most of our locations, we prefer to have a local national as the resident CEO.  That I think is much easier for facilitating whatever arrangements you have to make with the local port authority, being perceived to be a good corporate citizen.  But overall, if you’re operating efficiently and you’re investing in the facility and improving the general efficiency, they’ll be happy.” The magazine also featured an article contributed by Rafael J. Consing, ICTSI Vice President and Treasurer, titled “The PPP Challenge,” where he underpinned how port concessions and resale opportunities worldwide provided the platform for ICTSI’s expansion. 

Meanwhile, Sociedad Puerto Industrial Aguadulce S.A., a joint venture between ICTSI and PSA International, won the publication’s Port Deal of the Year for the Aguadulce Port Terminal Concession in Buenaventura, Colombia. World Finance is published every two months by World News Media in London.  Since 2007, the publication has been issuing various awards annually for achievement and innovation in the global finance sector.  Its editorial team and readership adjudge the awards. The index on the best project finance deals for the year is available online at www.worldfinance.com

Below is the complete list of winners:

• Saltillo-Monterrey Toll Road, Mexico
• Guarulhos International Airport, São Paulo, Brazil
• Siervo de la Nación Highway Project, Mexico City
• Metro de Sevilla, Seville, Spain
• Wessal Casa Port, Casablanca, Morocco
• Various ventures sponsored by ICTSI, global
• Smart Hospital Cantabria, Santander, Spain
• Gigawatt Natural Gas Power Plant, Mozambique
• Magdalena River Waterway, Colombia
• Calabar Specialist Hospital, Nigeria
• ACWA power projects Moatize IPP, Mozambique and Noor 1 CSP, Morocco
• Divinópolis Wastewater System, Minas Gerais, Brazil
• Attika Schools PPP Project, Greece
• ConocoPhillips’ Hydrocarbon Deal, Nigeria
• Rutas de Lima, Peru
• SunEdison San Andrés Solar Power Plant, Copiapó, Peru
• Privatization of Caixa Seguros, Portugal