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On Jan. 6, International Container Terminal Services Inc. (ICTSI) announced plans to close its rail-served inland container depot (ICD) in Calamba, Laguna, Philippines, the first week of February. The ICD had been incurring losses since it began operations in 1998, ICTSI officials said in a prepared statement.
In an effort to minimize overhead costs, ICTSI last year merged with ICX Corp., which operates the ICD.
But industry in Calabarzon (the terminal's main market) didn't grow as expected, and the area's investments and trade volume slowed the past four years.
The ICD also couldn't compete with trucks, and ICTSI was forced to slow locomotives because of poorly maintained tracks and bridges, which prevented the company from adding trains and increased trip costs, ICTSI officials said.
ICTSI plans to decommission one 2,000-horsepower diesel electric locomotive and 26 rail cars used for train service, but maintain the Laguna property.
The ICD provides a rail link to the Manila International Container Terminal through a connection to the Philippine National Railway and spur lines owned by ICX. ICTSI currently offers two daily, four-hour, 76-mile round trips, with each train carrying about 41 containers.