A subsidiary of ultra bilyonaryo Enrique K. Razon’s International Container Terminal Services Inc. (ICTSI) is halting its operations at the Makassar container terminal in South Sulawesi, Indonesia.
In a regulatory filing, ICTSI said subsidiary PT Makassar Terminal Services (MTS) and PT Pelabuhan Indonesia IV (Pelindo IV) have mutually agreed not to renew their cooperation agreement which is expiring end-this month.
ICTSI, through a wholly owned subsidiary ICTSI Far East Pte. Ltd., acquired MTS, which has a cooperation agreement with Pelindo IV, back in May 19, 2006.
The cooperation agreement covers the procurement, installation and operation of container loading and unloading equipment at the Makassar port.
The agreement was originally due to expire on September 30, 2013, but was extended until January 31 this year.
“In view of the foregoing, MTS, which is one of ICTSI’s three operating subsidiaries in Indonesia, will immediately cease operations at the Makassar Container Terminal,” ICTSI said.