ICTSI looks for growth overseas as PHL situation dictates

International Container Terminal Services Inc. (ICTSI), the flagship company of businessman Enrique Razon, is on the prowl for opportunities in Europe, Africa, and parts of Asia, citing the significant contribution of overseas operations to revenues and lack of opportunities to expand in the Philippines when it comes to port operations.

 

Rafael Consing, vice president for finance and treasurer, told reporters on the sidelines of Asian Investor and Finance Asia's forum on “Rising Stars of the Philippines” on Thursday the company is mainly interested in getting into state-run ports that are up for privatization.

 

“We want to look at more opportunities in Africa, Eastern Europe, and some Asian countries as well. It is really a function of how many countries are undergoing port privatization and there aren’t many. I can say a handful of opportunities,” Consing noted.

 

He cited the significance of global operations to the company's bottom line.

 

“It has always been like that already. In fact most of our earnings are coming from outside of the Philippines. I would say about 65 percent is coming from outside the Philippines in terms of total revenues,” he said.

 

The focus overseas also has to do with the Philippine reality – that the company is well positioned strategically across the country, including port operation in Subic, Manila, Batangas, General Santos, Davao del Norte, and Misamis Oriental.

 

“In so far as the Philippines is concerned, we have covered the most strategic areas. That is why we are looking for opportunities outside the country,” Consing noted.

 

On capital expenditures, the ICTSI official said it would be lower in 2014, compared with the $500 million allotted this year, because the projects in Mexico and Argentina would have been completed by next year.

 

Next year's capex would mainly fund a port project in Columbia and port expansion in the Philippines and other Asian port terminals

 

“... Columbia will only be the greenfield project that we will be spending on plus some of the expansion of the other ports,” Consing noted.

 

The port management company operates in Asia, Europe, Middle East, Africa, and the Americas. – VS, GMA News