The International Container Terminal Services Inc. (ICTSI) on Thursday bared a desire to invest more in the business where it has excelled, especially in places where its business model has proven successful to support continued growth in 2024.
“We are very actively looking for investments in the regions where we have been successful. Meaning Asia, Latin America, Africa and Middle East,” Enrique Razon Jr., ICTSI chairman and president, said at the company’s annual stockholders’ meeting held online.
“We are very active in pursuing these investments and hopefully we continue to be successful in that area,” he added.
Razor said 2024 is ripe with opportunities. “We continue our single minded pursuit of the strategy of expanding in the regions we are focused on, which gives the company the best growth opportunities,” he said.
“We intend to pursue further growth in 2024 as we employ our strategy of operating gateway terminals where we have management control in locations with favorable competitive dynamics and high growth potential, while expanding our operating terminals to ensure our resilience,” he said.
Razon also said the country’s territorial dispute with China over the West Philippine Sea has no impact on its operations.
“We have not experienced any disruption in China as we have been dealing mainly with local authorities. There have been no effect or any issues there,” he said.
ICTSI has set aside $450 million as capital expenditures this year, higher than only $336.32 million in 2023.
The estimated capex will be used to complete expansion plans in Brazil and the development of EJMT in Indonesia as well as the expansion in Mexico, the Philippines and the Democratic Republic of Congo.
ICTSI earlier reported a 17 percent drop in net income to $511.53 million in 2023 from $618.46 million a year ago.
Gross revenue from port operations last year proved six percent higher to $2.39 billion versus only $2.24 billion in 2022.
The port operator handled consolidated volume of 12,749,214 twenty-foot equivalent units (TEUs) in 2023, four percent more compared to only 12,216,190 TEUs handled in 2022.
