Dire geopolitics not a hurdle — Razon

‘We are very active in pursuing these investments and hopefully we continue to be successful in that area’

Despite rising geopolitical tensions, global port operator International Container Terminal Services Inc. (ICTSI) remains unfazed that it even plans to further expand its businesses across four regions — Asia, Latin America, Africa and the Middle East.

“We are very actively looking for investments in the regions where we have been successful. Meaning Asia, Latin America, Africa, and the Middle East,” ICTSI chairman and president Enrique K. Razon Jr. said during the company’s annual stockholders’ meeting on Thursday.

“We are very active in pursuing these investments and hopefully we continue to be successful in that area,” he added.

Amid the tense situation between the Philippines and China over territorial waters, Razon emphasized that their business operations in China have maintained a positive trajectory and continue to perform well.

“We have not experienced any disruption in China as we have been dealing mainly with local authorities. There has been no effect or any issues there,” Razon indicated.

Strong turnaround seen

With the ICTSI chief’s optimism, the company is expected to reverse the double-digit decline in profits it incurred in 2023 after lingering global market uncertainties took a toll on its operations.

ICTSI booked $511.53 million attributable net income in 2023, which was 17 percent lower than the recorded $618.46 million a year ago.

Notably, excluding the impairment of goodwill attributed to Pakistan International Container Terminal, net income attributable to equity holders would have grown six percent to $676.83 million.

In contrast, its revenues from global port operations last year improved by 6 percent to $2.39 billion from $2.24 billion in the year before.

ICTSI handled a consolidated volume of 12,749,214 twenty-foot equivalent units, or TEUs, in 2023, up by 4 percent from the 12,216,190 TEUs handled in 2022.

Last year, the company spent $336.32 million to fund ongoing expansions.

This year, the company expects that spending may reach $450 million to sustain growth momentum.

Among others, the estimated capital expenditure will be utilized to fund the ongoing expansion in Brazil, Indonesia, Mexico, the Democratic Republic of Congo and the Philippines. It will also bankroll the development of the recently acquired terminal in Iloilo province.

Operating 33 terminals in 20 countries across six continents, ICTSI is a global developer, manager and operator of container terminals in the 50,000 to 3.5 million TEU per year range.