International Container Terminal Services Inc. (ICTSI) has secured a $300-million loan from the Asian Infrastructure Investment Bank (AIIB) to expand and modernize its local port properties.
The company said Wednesday the funding will be used to upgrade the Manila International Container Terminal (MICT), develop the South Luzon Container Terminal (SLCT) in Batangas, and expand the Mindanao Container Terminal (MCT).
The funding, AIIB’s first non-sovereign-backed transaction in the Philippines, will help expand capacity, improve operational efficiency, and reduce vessel turnaround time across the three terminals.
Part of the loan will also fund fully electric quay cranes and the replacement of diesel-powered yard equipment to help lower greenhouse gas emissions.
The agreement was signed during AIIB President Zou Jiayi’s first visit to the Philippines alongside ICTSI Chairman and President Enrique K. Razon Jr.
“ICTSI represents exactly the type of partnership AIIB aims to build as the Bank enters its second decade,” Zou said.
“This transaction demonstrates how AIIB can support infrastructure development by deploying innovative financing instruments and working closely with global operators who have the scale and execution capacity to deliver impact for the people we serve. We look forward to deepening this strategic relationship.”
Razon, meanwhile, said the partnership supports ICTSI’s long-term growth and sustainability goals.
“ICTSI welcomes this promising partnership with the AIIB, which supports our expansion and sustainability initiatives,” he said.
“We value AIIB’s shared commitment to long-term value creation, inclusive economic growth, and responsible business practices, and as such, look forward to strengthening our partnership and accomplishing more together.”
By 2027, ICTSI said MICT’s annual capacity is projected to rise to 3.7 million twenty-foot equivalent units (TEUs), while MCT and SLCT are expected to handle around 1 million TEUs and 800,000 TEUs, respectively, by 2028.
The company operates 33 terminals in 19 countries and is one of the world’s largest independent port operators.