New Muara Container Terminal Services, SDN (NMCTS), a subsidiary of global port operator International Container Terminal Services, Inc. (ICTSI), will no longer renew its services agreement to operate and maintain the Muara Container Terminal in Brunei.
The port operator’s services will end February 21, 2017, according to a regulatory disclosure by ICTSI. As part of the Brunei government’s ongoing overall restructuring, state-owned enterprise Darussalam Assets Sdn Bhd will take over Muara Port operations from the Port Department February 21, 2017, ICTSI added.
“As part of ICTSI parent company’s efforts at rationalising its portfolio to achieve the best possible sources of long term growth and return for its shareholders, ICTSI, through NMCTS, is no longer interested in signing a new contract with the State Owned Enterprise Darussalam Assets Sdn Bhd,” the port operator stated.
ICTSI noted that future plans for Muara Port contemplate its integration with the development of a special economic zone, which is not the port operator’s core competency and will require huge investments on the part of NMCTS.
NMCTS has been on yearly extensions to its original service agreement signed in May 2009 with a contract period of four years, and may be extended for a maximum of two years.
ICTSI is in the business of port operations, management, and development, and has a portfolio of terminals and projects that spans developed and emerging market economies in the Asia Pacific, the Americas, Europe and the Middle East, and Africa.
Photo from www.ictsi.com