Bilyonaryo Enrique Razon?s International Container Terminal Services, Inc. (ICTSI) subsidiary in Brunei will no longer operate and maintain the Muara Container Terminal by end of February.
In a disclosure to the stock exchange, ICTSI announced that New Muara Container Terminal Services, its wholly-owned subsidiary, will not renew its contract on the Services Agreement with the Port Department, effective February 21, 2017.
The company said that the decision is due to the ongoing restructuring of the Brunei Government.
?NMCTS has been on yearly extensions to its original service agreement for the past 4 years. As part of the Brunei Government’s ongoing overall restructuring, State Owned Enterprise Darusalam Assets Sdn Bhd will take over the Muara Port operations from the Port Department effective February 21, 2017?, the disclosure said.
It also emphasized that the future plans of the port will require investment for the company, and is not in line with its core competency.
?The future plans for Muara Port contemplate its integration with the development of a Special Economic Zone, which is not ICTSI?s core competency and will require huge investments on the part of NMCTS. 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 Darusalam Assets Sdn Bhd?, it added.