April 13, 2014

ICTSI wins Iraq port contract

In a disclosure to the Exchange, ICTSI (ICT) said it has won the bidding for the contract to operate one of the berths in the Port of Umm Qar, Iraq. Located on the Gulf Coast, Umm Qasr is the largest port in Iraq containing 21 berths and handling 500,000 TEUs in 2013. ICTSI (M.E) JLT, a wholly owned subsidiary of ICT, signed a contract with General Company for Ports of Iraq (GCPI) for the 10-year management of berth 20 and the construction of 3 new berths under a 26-year build-operate-transfer scheme. ICT plans to invest US$100m to develop the project and an additional US$30m for the rehabilitation of berth 20.

Our take: Phase 1 of the expansion project will have an estimated capacity of 300,000 TEUs. When fully utilized, we expect this to add 4% to ICT’s total TEU throughput volume. Should volumes spike as the Iraqi economy develops, capacity can be further expanded to 900,000 TEUs when fully developed. – WealthSec