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PT Makassar Terminal Services, a subsidiary of International Container Terminal Services Inc., and state-run PT Pelabuhan Indonesia IV (Pelindo IV) are not renewing their cooperation agreement at Makassar Container Terminal in Indonesia
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The cooperation agreement expired on January 31, 2023
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MTS will immediately cease operations at Makassar Container Terminal
PT Makassar Terminal Services (MTS), a subsidiary of International Container Terminal Services Inc. (ICTSI), and PT Pelabuhan Indonesia IV (Pelindo IV) are no longer renewing their cooperation agreement at Makassar Container Terminal in Indonesia.
ICTSI in a regulatory disclosure said the decision was mutual. The cooperation agreement, which was originally due to expire on September 30, 2013, was extended until January 31, 2023.
As a result, MTS, one of ICTSI’s three operating subsidiaries in Indonesia, will immediately cease operations at Makassar Container Terminal.
ICTSI, through wholly owned subsidiary ICTSI Far East Pte Ltd, acquired MTS on May 19, 2006. MTS had a cooperation agreement with state-run Pelindo IV, which owns the terminal, for the procurement, installation and operation of container loading and unloading equipment at the Makassar Container Terminal in South Sulawesi, Indonesia.
In May 2006, ICTSI purchased 95% of the outstanding shares of MTS, cargo handler at the Makassar, from Portek Systems and Equipment Pte Ltd. of Singapore and Indonesian liner, PT Pelayaran Nusantara Meratus.
Makassar is the Indonesian gateway to South Sulawesi and eastern Indonesia, and facilitates the country’s nickel and cocoa trade. It is southern Sulawesi’s major port, with regular domestic and international shipping connections.
ICTSI’s other subsidiaries in Indonesia are PBM Olah Jasa Andal, which provides services to Tanjung Priok port in Jakarta, and PT East Java Development, which operates a multipurpose terminal located in Lamongan Regency in East Java.
