By Cris Larano
MANILA--Philippine port operator International Container Terminal Services Inc. (ICT.PH) said Friday it has pulled out its investment in a port in Syria due to civil unrest and violence in the Middle Eastern country.
ICTSI told the stock exchange that it sent--through its wholly owned Tartous International Container Terminal JSC--a notice of termination of its 10-year agreement with Syrian port agency Tartous Port General Co. to develop, maintain and operate the Tartous container port, located on the Mediterranean coast of Syria. The company cited "unforeseen change of circumstances brought about the civil unrest and violence which has gravely affected business and trade in Syria" in terminating the deal, which started in March 2007.
The company said the Syrian operation accounts for 0.4% of ICTSI's total assets as of September 2012.
ICTSI said it will write off the deal and assets in Syria at a cost of around $1.2 million, and save around $4 million annually in port fees and cash operating expenses from the termination of the deal.
Write to Cris Larano at [email protected]
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