The Brazilian subsidiary of International Container Terminal Services Inc. (ICTSI) is adding rail logistics to its operations through a long-term lease of the Floriano Intermodal Terminal in Barra Mansa, Rio de Janeiro.
ICTSI Rio Brazil created a new company called IRB Logística to run the rail operations. It will take over the operations of the terminal from Multitex Logistica starting July 1.
“We are excited for IRB Logística to commence operations and look forward to coordinating closely with our sister company to improve synergy in the regional supply chain. While ICTSI Rio’s and IRB Logística’s operations are independent from one another, we share the common goal of driving economic growth in the region by providing more efficient, seamless, and value-added solutions across the entire logistics chain,” ICTSI Rio CEO Roberto Lopes said.
IRB Logística will offer sustainable cargo handling, transport, and storage services to the economic, industrial, and production centers in Rio de Janeiro, Minas Gerais, and São Paulo.
The intermodal facility handles containerized cargo and steel products. The rail facility can accommodate up to 70 train wagons and features a yard storage and container stuffing.
In March, ICTSI said it is spending $250 million in capital expenditures this year, a third larger than its actual spend in 2020, as it completes the expansion and the construction of its various ports globally.
Based on a statement attached to a disclosure, the company has decided to increase its capital spending program for 2021 by 30 percent to $250 million from its actual capital outlays of $198.7 million in 2020.
The budget will be used to complete the expansion of the Manila International Container Terminal Inc., the yard expansion of its port in Matadi, Democratic Republic of Congo, and the new expansion project in Melbourne, Australia.
It will also be used to acquire and upgrade new equipment and for its annual maintenance requirements.
ICTSI also reported that its profits grew by a percentage point to $101.8 million in 2020 from $100.4 million the year prior thanks to the 2-percent increase in its gross revenues to $1.51 billion from $1.48 million the previous year, and the lower cash operating expenses resulting from the continuous group-wide cost reduction and optimization measures.