Port operator ICTSI eyes profits amid global recovery

International Container Terminal Services, Inc. (ICTSI) expects a turnaround this year on the back of the recovering global economy. The listed port developer and operator, which posted lower profits last year, said it was looking at developing new ports in the Middle East, Asia Pacific and Africa. "If our performance in the last quarter of 2009 was any indication, we expect brighter prospects for 2010," ICTSI Chairman Enrique K. Razon Jr. told stockholders at their annual meeting on Thursday. "Profits should rise this year. Last year, the first quarter was a disaster, but there’s global growth this year. I think it’s obvious that it will be a better year," he told reporters later. ICTSI profits fell by 15 percent to $54.9 million last year mainly due to lower shipment volume, higher interest expenses and depreciation associated with continued investments in container handling capacity amid the global economic slump, Razon said. Aside from operating the Manila International Container Terminal, ICTSI also runs the Mindanao Container Terminal in Misamis Oriental, Makar Wharf in General Santos, Cubi Point in Zambales and Sasa International Port in Davao City. ICTSI, one of the world’s largest port developers, also operates the Pulau Muara Container Terminal in Brunei, Port of La Plata in Argentina, Port of Batumi in Georgia, Port of Buenaventura in Colombia, Port of Guayaquil in Ecuador, Yantai Port in Shandong Province in China, Tartous Container Terminal in Syria and the Makassar Port Container Terminal in Indonesia. Last year, ICTSI bagged a P36-billion contract to develop and operate a significant portion of the Port of Manzanillo, Mexico’s busiest cargo hub. "We've done a lot of things in Latin America in the last two years so there’s nothing there at the moment," Razon said. ICTSI shares gained P2 to close at P27.50 apiece on Thursday. — NPA, GMANews.TV