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International Container Terminal Services Inc. unit Abbotsford Holdings partners with Prime Alta Holdings in a joint venture freight forwarding and logistics company
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The JV, Fortune Logistics Corp, will primarily operate and engage in domestic and international ocean, air and land freight forwarding and logistics
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ICTSI expects Fortune Logistics to reduce the terminal operator’s costs and improve its operational efficiency
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The JV’s initial capitalization is P25 million with Abbotsford owning 51% of the capital stock while Prime Alta will own 49%
International Container Terminal Services Inc. (ICTSI) subsidiary Abbotsford Holdings Inc. will operate a freight forwarding and logistics company in partnership with Prime Alta Holdings Inc.
ICTSI said the joint-venture company, to be named Fortune Logistics Corp., will primarily operate, engage in, and carry on the business of domestic and international ocean, air and land freight forwarding and logistics, ICTSI said a regulatory disclosure on September 5.
Through the JV company, ICTSI “expects to reduce costs and improve operational efficiency associated with the processing of cargo that [is] intended to be used by ICTSI for its various operations in the Philippines.”
ICTSI said it is also looking at potentially utilizing these services on an arm’s-length basis to the terminal operator’s other stakeholders and related parties.
The JV will be initially capitalized at P25 million, of which Abbotsford will pour in P12.75 million while Mabalacat, Pampanga-based holding firm Prime Alta will inject P12.25 million. This will effectively make Abbotsford 51% owner of Fortune Logistics while Prime Alta will own 49%.
ICTSI’s board approved the partnership on September 5.
The parties will register the joint venture company with the Securities and Exchange Commission (SEC) and obtain approval for its incorporation and start operations immediately thereafter, ICTSI said.
SEC approval and other standard regulatory permits and licenses are targeted to be obtained within one to two months after the parties’ signing of the shareholders’ agreement for the joint venture, ICTSI added.
The principal office address of Fortune Logistics, whose name is still subject to SEC approval, will be in the City of Manila.
The directors of the JV’s company’s board, three of whom will be appointed by Abbotsford and two by Prime Alta, will oversee the management and operations of the joint venture company.
ICTSI is a global container terminal operator with 34 terminal operations in 20 countries worldwide. In the Philippines, it operates 10 terminals with the Manila International Container Port as its flagship operation.
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