TecPlata, the Buenos Aires province-based unit of International Container Terminal Services (ICTSI), is reducing its workforce by 90%, according to local news outline La Política Online. 

Located at the La Plata port in the Berisso municipality, TecPlata has yet to secure shipping contracts since being inaugurated in July 2015. ICTSI is also said to have been mulling a sale of the concession since early 2016.

A total of 120 workers received termination letters, prompting protests early Tuesday in Berisso, news outlet Berisso Ciudad reported.

The remaining TecPlata workforce consists of managerial positions, which could suggest that the operations are to be restructured, La Política Online reported.

In 2015, ICTSI reported impairment charges of US$88mn taken from TecPlata, "due to lower projected cash flows on its updated business plan as a result of the prevailing and challenging economic conditions in Argentina."

TecPlata was envisioned as an option to reduce port-related traffic congestion in the capital Buenos Aires, although slower international trade and falling TEU traffic in Argentina has complicated TecPlata's operational position.

ICTSI had also been competing in the tender for a concession to operate the No. 5 terminal in the Buenos Aires port, currently under the administration of BACTSSA, the Argentine subsidiary of Hutchison Port Holding.

BACTSSA is expected to be awarded an extension at terminal No. 5, based on its higher payment offer to the Buenos Aires port authority (AGP).


Source: BNamericas

Photo: http://www.portstrategy.com