ITS Collaborates with ING for Green Financing to Boost Terminal Capacity and Sustainability

ITS Collaborates with ING for Sustainable Financing

International Transportation Service (ITS), a key player in container terminal operations, has made significant strides towards sustainability with the help of ING Capital LLC. Recently, ING announced the successful closing of credit facilities amounting to $424 million designated to support ITS' ambitious terminal redevelopment project in the Port of Long Beach, California.

Background on ITS

Owned by a Macquarie Asset Management (MAM) vehicle, ITS plays a crucial role in the marine terminal infrastructure at the San Pedro Bay complex. The terminal has been an operational gateway for the U.S. West Coast since 1971 and is poised for an expansive upgrade. The funds facilitated by ING will enhance yard capacity by 50% and assist in electrifying ITS' terminal fleet, aligning with California's Clean Air Action Plan (CAAP).

Key to this financing is a commitment to environmental sustainability. The credit facilities contain $224 million in taxable financing alongside $200 million exempt from taxation, underscoring ING's proactive approach to integrating green finance into its lending practices. This initiative is not only about expanding ITS' operational capabilities; it reflects a broader trend in the industry towards sustainable practices and environmental stewardship.

The Redevelopment Plan

The upgrade includes a significant slip-fill project estimated at $300 million. The planned enhancements will allow the terminal to accommodate two 18,000 TEU vessels at once, drastically improving efficiency.

As part of its commitment to sustainability, ITS has also pledged to electrify its fleet. This move is critical as the company aims to meet stringent decarbonization targets set forth by local government initiatives. Under the auspices of the City of Long Beach, ITS is escalating its efforts to reduce emissions and transition to greener technologies, including the use of hydrogen fuel and renewable energy sources.

Up to $100 million of the financing is earmarked specifically as Green Loans. This aspect of the financing is crucial, as it aims to secure electrified terminal equipment necessary for the operational transformation.

Strategic Partnerships

Mike Dyadyuk, Managing Director at MAM, highlighted the partnership with ING and the significance of this financing. He stated, “Our collaboration marks a pivotal advancement in enhancing the infrastructure across the Americas.” This project is set not only to improve ITS's operational capability but also to align with CAAP objectives, thereby streamlining essential decarbonization efforts.

Marta Bede, Managing Director at ING, expressed pride in supporting ITS' innovative strategy aimed at achieving net-zero emissions. “By structuring the financing as Green Loans, we can significantly expedite investments in zero-tailpipe emissions technologies,” she noted.

Suleyman Kilci, Vice President of Sustainable Solutions Group at ING, reinforced the company’s commitment to funding projects that mitigate environmental impacts while fostering capacity growth. This alignment reinforces ING's leadership in sustainable finance within the transportation sector.

Conclusion

ITS is poised to lead the charge in sustainable container terminal operations, leveraging the support from ING to not only enhance its infrastructure but also to make substantial contributions to environmental sustainability. With the ongoing trends toward decarbonization in the transportation sector, partnerships like these are vital for shaping a greener future in logistics.

To learn more about ITS and its commitment to sustainability and innovation, visit ITS website.