Home›Procurement News›Philippines : International Container Terminal Services agrees to cancel 25-year lease contract
Procurement And Tender News
Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.
Philippines : International Container Terminal Services agrees to cancel 25-year lease contract
Publish Date : 02-Mar-2017
International Container Terminal Services, Inc. (ICTSI), through its 100% subsidiary, ICTSI Oregon, Inc., and the Port of Portland have reached a mutual agreement to cancel a 25-year lease contract to operate the container facility at the Ports Terminal 6.
In a filing with the Philippine Stock Exchange, ICTSI stated, the agreement allows ICTSI Oregon to be relieved of its long-term lease obligations effective March 31, 2017, pending approval by the Port Commission.
In return, the Port will get US$11.45 million in compensation to rebuild the business, as well as additional container handling equipment, spare parts and tools at the terminal.
The agreement to cancel the contract has been reached after years of labor unrest that had disrupted operations at the port in spite of legal victories won by ICTSI.
The National Labor Relations Board (NLRB) had affirmed the ruling of an administrative law judge that labor unions breached federal labor law by engaging in coercive activity directed against ICTSI Oregon, Inc. at Terminal 6 at the Port of Portland.
This was the second time that a decision was issued against the International Longshore and Warehouse Union (ILWU International) and ILWU Local 8 (Local 8).
The NLRB concluded that, from September 2012 to June 2013, ILWU members worked in a decidedly slow manner and otherwise interfered with productivity at Terminal 6 and that the ILWU International and Local 8 were responsible for this illegal conduct.
ICTSI Oregon president Elvis Ganda, said, "The importance of this ruling should not be underestimated. Once again, the NLRB, a neutral federal agency charged with enforcing the nations labor laws, has found that the ILWUs slowdowns and other efforts to interfere with production at Terminal 6 were illegal."
