ICTSI on expansion mode; raises capex to $450 million

MANILA, Philippines — International Terminal Services Container Inc. (ICTSI) has raised its capital expenditures to $450 million this year to pursue new expansion projects.

The amount is 34 percent higher than the $336.32 million capex it set aside in 2023, confident in its growth prospects despite global risks.

ICTSI is poised to complete the development of the East Java Multipurpose Terminal in Indonesia.

Further, the company is expanding the capacities of its facilities, particularly in the Philippines, Democratic Republic of Congo and Mexico.

In January, ICTSI secured the 25-year concession to operate and maintain the Iloilo Commercial Port Complex, committing to spend nearly P11 billion for the project.

Broken down, ICTSI will invest P5.81 billion to upgrade the port and P4.72 billion to pay the concession.

ICTSI chairman and president Enrique Razon Jr. said the company would explore opportunities for expansion even as it faces economic risks arising from geopolitical conflicts abroad.

“While the geopolitical backdrop remains complex, 2024 is set to be ripe with opportunities, as we continue to invest in new and existing terminals,” Razon said.

“We have a stronger platform than ever to grow, drive market share and continue our successful track record as a responsible business that creates long-term sustainable value for shareholders,” he added.

Razon also pins his trust on ICTSI to bounce back this year from the 17 percent drop in profit to $511.53 million recorded last year. The company attributed the decline in net income primarily to the impairment cost incurred in the acquisition of Pakistan International Container Terminal (PICT) in Karachi, Pakistan.

Excluding the impairment of goodwill attributed to PICT and other non-current assets, net income attributable to equity holders would have grown seven percent to $676.83 million last year.

ICTSI grew its revenue by seven percent to $2.39 billion last year, from $2.24 billion in 2022, gaining from tariff hikes and volume growth. 

The company facilitated a total of 12.75 million TEUs last year, as trade picked up pace from the pandemic slowdown.

Meanwhile, expenses jumped by eight percent to $662.7 million, reflecting the increasing cost of business globally with demand outpacing supply in the pandemic aftermath.

The company’s share price closed at P283.2 per share, down by 2.01 percent.

ICTSI serves as one of the largest logistics players in the world, operating in six continents with the intent of further expanding its network of terminals.