ICTSI READIES FOR TRADE REBOUND WITH $250-M CAPEX

Billionaire Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI) is increasing spending this year to expand ports in the Philippines and overseas in preparation for the recovery in trade.

ICTSI said capital spending in 2021 was targeted at $250 million, which would be used to finish the expansion of its flagship Manila International Container Terminal apart from ports in Congo and Australia. The spending would also cover the purchase of new equipment, upgrades and maintenance.

ICTSI spent $198.7 million in 2020 for its new terminal in Kribi, Cameroon, and to support other terminals that showed volume growth amid the COVID-19 pandemic.

The company ended 2020 with a slight increase in profits following revenue growth and cost-cutting measures.

Net income last year rose 1 percent to $101.8 million, while revenues grew 2 percent to $1.5 billion. Volumes for the entire year increased by 0.2 percent to 10.2 million twenty-foot equivalent units.

“We were swift to take action at the start of the pandemic to initiate cost reduction, reduce capital expenditures, and later seized opportunities to lengthen our debt maturities at lower rates,” Razon said in a statement.

ICTSI said cash operating expenses dropped 2 percent to $453.6 million.

Razon said improving prospects seen in the second half of 2020 were expected to continue through 2021.

“Those gains have continued into the new financial year as ICTSI emerges from these trying times leaner, stronger and optimistic of the future as governments around the world begin the herculean task of global mass vaccination,” he said.