ICTSI remains strong despite headwinds, says Razon

• Enrique Razon Jr., chairman and president of International Container Terminal Services Inc, is optimistic ICTSI will overcome global headwinds, adding that “business remains strong”.

• Headwinds include inflationary pressures and the ongoing Russia-Ukraine war

• ICTSI revenues increased 20% in 2022 while consolidated cargo volumes rose 9%

International Container Terminal Services Inc. (ICTSI) chairman and president Enrique Razon Jr. is optimistic the global container terminal developer and operator will overcome headwinds, adding that the “business remains strong”.

At the ICTSI annual stockholders’ meeting on April 20, Razon noted “inflationary headwinds throughout the globe right now and we expect that to continue.”

He said there’s no telling when the inflationary environment will end, but that it will “most likely” end in a recession. This is so as “recessions normally are what eventually fix inflation because of slowdown in growth and reduced demand.”

The Russia-Ukraine war, he added, “is causing global instability”, including energy crises, and “we also cannot say when this war will conclude or how long it will it last.”

But he said the “company’s business remains strong and we continue to be very prudent in our actions and watching very closely our costs.

“We believe that these problems will continue for the foreseeable future, but the company will overcome them eventually.”

Last year’s flooding and the current economic crisis in Pakistan have affected the operations of ICTSI’s terminal in Karachi, Razon said.

“But, as we always do, we will ride out these issues,” he said, adding that ICTSI’s portfolio is “balanced in such a way that some countries do bad, some countries do very good but overall our growth continues.”

“We have not been adversely impacted as much in the big picture.”

Razon said ICTSI had a record year in 2022 “in spite of the greater uncertainty brought about by the war in Ukraine and its impact on the global economy and on energy prices.”

Net income attributable to shareholders in 2022 jumped 44% to $618.46 million from the previous year’s $428.57 million, primarily due to higher operating income.

Revenues increased 20% to $2.24 billion in 2022 from the $1.87 billion reported in 2021.

ICTSI also handled a consolidated volume of 12.216 million TEUs in 2022, up 9% from the 11.163 million TEUs handled in 2021.

He noted, however, that 2022 “was a relatively quiet year in acquiring new terminals” and that “we expect that to change in the near future.”

ICTSI last year undertook expansion projects in Manila International Container Terminal in the Philippines, Victoria International Container Terminal in Australia, Contecon Manzanillo S.A. de C.V. in Mexico, Matadi Gateway Terminal in Congo, and Onne Multipurpose Terminal in Nigeria, Razon said.

The global port operator also acquired majority ownership in a multi-purpose terminal in Lamongan Regency, East Java, Indonesia, its 11^th terminal in Asia Pacific, Razon said.

ICTSI formed iTracker Logistica Inteligente, a new multimodal business operating in Brazil, and launched the ICTSI mobile app for cargo visibility in the Philippines. The mobile app will soon be available in other ICTSI terminals.

The Adriatic Gate Container Terminal launched the first regular train connection from the Croatian port of Rijeka to Enns in Austria, while South Pacific International Container Terminal in Papua New Guinea (PNG) received a pair of new ship-to-shore cranes, the largest port equipment in PNG.

RELATED READ: SPICT receives ship-to-shore cranes

ICTSI’s estimated capital expenditure for 2023 is approximately $400 million, higher than the $330 million in 2022.

ICTSI operates 33 terminals in 20 countries across six continents and continues to pursue container terminal opportunities around the world.