The Macau Special Administrative Region Government has renewed the contract granting operation rights of the key Outer Harbour Ferry Terminal to incumbent Sociedade de Turismo e Diversões de Macau (STDM) for a new term of five years.

Under the terms of the newly signed 60-month deal, STDM will pay 18% of its pre-tax profits from running the terminal back to the government each year, replacing the previous agreement’s fixed monthly fee of MOP1,800,800.

According to details published in the Official Gazette this week, the contract allows STDM to set operating hours and allocate waiting rooms, berthing positions and other facilities. In exchange, STDM must submit annual audited financial reports to the government by March 31 that outline profits from the concession.

While the government had announced in February it would open the terminal contract to competitive public tender, Transport Secretary Raimundo Arrais later revealed he had already notarized a renewed exclusive deal with STDM last month.

Another condition in the five-year grant allows the government to terminate the agreement if STDM’s cumulative share transfers surpass 50% of its total stock during the contract period.

STDM is the majority owner of Macau casino operator SJM Resorts S.A. and is over 50% controlled by an alliance led by MGM China Chair Pansy Ho and also including the Fok Foundation. The renewed contract ensures continued ferry services and operations at the vital transportation link will remain uninterrupted. VC