PH port operator plans Africa expansion

Rappler.com
ICTSI Chairman Enrique Razon Jr says the firm is eyeing two ports in Africa as it continues its global expansion

EXPANSION. International Container Terminal Services Incorporated (ICTSI) Chairman Enrique Razon Jr. says Thursday, April 16 the firm is eyeing two ports in Africa for its international expansion. File photo by Agence France-Presse

 

MANILA, Philippines – International Container Terminal Services Incorporated (ICTSI) Chairman Enrique Razon Jr. said the firm is eyeing two ports in Africa for its international expansion.

Razon told reporters after the company’s annual stockholders’ meeting Thursday, April 16, that the port operator is looking at ports in Kenya, Mombasa and Cameroon.

He added that they participated in a bid for Cameroon pending results, while a bid is in the offing for the Kenya, Mombasa port.

The Port of Mombasa – the only international port in Kenya is the largest in East Africa handling over one million twenty-foot equivalent units (TEUs). The Kenya Ports Authority is now privatizing the operations and maintenance of the port.

The seaport in Cameroon is also being privatized.

“Both ports have a capacity of more than one million containers,” he added.

Earnings growth

Razon told the company’s stockholders that ICTSI earmarked $530 million for its capital expenditures (capex) 2015 after booking a 6% growth in earnings for 2014.

This year’s budget is 71% higher than the $310 million allocation for capital expenditures last year. Of the entire amount, ICTSI said it was able to disburse only 90% amounting to $279 million.

The company spent the amount for its new container terminals in Mexico and Argentina; capacity expansion in its terminal operation in Croatia; facilities rehabilitation in its newly acquired terminal in Honduras; and to start the development of the terminal in Democratic Republic of Congo.

The 2015 capex amount would be used for the completion of the company’s new container terminals in Mexico and Democratic Republic of Congo; capacity expansion in its terminal operation in Manila; and to start the development of the new terminals in Iraq and Australia.

ICTSI is investing approximately $140 million to complete the first phase of a joint venture container terminal development project with PSA International Pte. Ltd. (PSA) in Buenaventura, Colombia where it invested $64.7 million in 2014.

ICTSI earlier reported that its net income reached $191.5 million in 2014 or $10.8 million higher compared to $180.7 million in 2013.

Its port revenues rose 24% to $1.06 billion in 2014 from $852.4 million in 2013, mainly due to the revenue contribution from the new terminals in Manzanillo, Mexico; Puerto Cortes, Honduras; and Umm Qasr, Iraq; a strong 45% revenue growth from the company’s consolidated terminal operations in Yantai, China; and favorable volume mix.

Organic revenue growth, excluding revenues from ICTSI’s new terminals, was 8% as all 3 geographical segments reported double-digit growth led by Americas, Asia, and EMEA each posting strong 16% increases.

Revenues from ICTSI’s 7 key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, and Pakistan rose 10% and accounted for 74% of the consolidated revenues in 2014.

ICTSI’s consolidated volume handled went up by 18% to 7.44 million TEUs in 2014 from 6.31 TEUs in 2013. Heavily contributing to the volume are Contecon Manzanillo S.A. (CMSA); Operadora Portuaria Centroamericana; S.A. de C.V (OPC); and ICTSI Iraq.

ICTSI’s new container terminals in Manzanillo, Mexico, Puerto Cortes, Honduras, and Umm Qasr, Iraq also contributed to the consolidated volume growth. – Rappler.com