ICTSI allots P7.2 billion for capital expenditures

MANILA, Philippines - Port operator International Container Terminal Services Inc. (ICTSI) is allotting around P7.2 billion for its capital expenditures this year.

In a filing with securities regulators, ICTSI said the programmed capital budget does not include other project and start-up costs for international and domestic container terminals that the group may attempt to acquire in 2009.

Several opportunities are currently being evaluated, ICTSI said.

The company earlier said it was looking at Africa, Middle East, Latin America, Eastern Europe and Asia as sites for future expansion.

ICTSI said funding for the capex will come from internally-generated cash, available cash balances and new borrowings.

To date, ICTSI has facilities in Brazil, China, Colombia, Ecuador, Georgia, Indonesia, Madagascar, Poland and Syria.

The company recently signed a memorandum of understanding with the Brunei Economic Development Board to design and develop a 660-meter terminal in Brunei Darussalam.

ICTSI reported a 37.7-percent growth in net profit last year to P20.76 billion on the back of a 85.8-percent jump in net revenues.

Gross revenues from port operations rose 37.3 percent to P20.6 billion mainly coming from new terminal operations in China, Ecuador, Syria, Georgia as well as the Manila International Container Terminal (MICT).

The company began operations in the late 1980’s with the MICT, which is currently the country’s largest container port. Since then, ICTSI has expanded by winning concessions in Buenos Aires, Mexico, Pakistan, Saudi Arabia, and Thailand.

ICTSI, however, was forced to sell some of its international assets due to the Asian financial crisis that erupted in 1997. 

As finances improved over the years, ICTSI began rebuilding its international operations as it participated in the biddings for small to medium-sized ports.