ICTSI eyes India, other foreign ports for further expansion

Port operator International Container Terminal Services Inc. (ICTSI) is eyeing new markets like India to shore up the volume of cargo handled and boost its revenues.

ICTSI chairman and CEO Enrique Razon Jr. said the company continues to look at ports in Eastern Europe, Latin America, Middle East, and Asia to further expand its international reach.

It targets ports with capacity of 300,000 twenty-equivalent foot units (TEUs) to one million TEUs.

International operations continue to be a significant contributor to ICTSI’s earnings, accounting for 60 percent of the company’s total net profit last year compared with only 34 percent in 2005.

ICTSI’s net profit amounted to P1.84 billion in 2006, up 37 percent from P1.35 billion a year earlier.

Gross revenues from port operations went up 14 percent to P11.85 billion from only P10.44 billion.

ICTSI already operates ports in Madagascar, Poland, Brazil, and Japan.

It earlier said it was looking into opportunities in Yemen and Nigeria.

Just recently, ICTSI acquired a 60 percent stake in Chinese port operator Yantai Gangtong Container Terminal Co. Ltd., which manages the Yantai Gangtong Terminal in Shangdong province in China.

This project will be ICTSI’s first venture into the Chinese port market and the latest addition to the company’s growing portfolio of local and international operations.

Ranking 10th among all the ports in China, the Yantai Port is one of the country’s pivotal ports. Last year, it handled 1.169 million TEUs, representing a 68.4 percent growth over the 2005 volume.

The port lies across the heavy industrial base in Northeast China, as well as South Korea and Japan.

ICTSI has been rebuilding its foreign port Operations over the past three years. In 2001, the company sold seven of its overseas port operations to raise funds to settle debts.

ICTSI’s flagship operation is the Manila International Container terminal — the main entrance and exit point for the country’s imports and exports.

Last year, ICTSI invested P1.8 billion to continue to expand the handling capacity and improve the operating efficiency of its operations in Manila, Poland, Brazil and Madagascar.

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