International Container Terminal Services, Inc (ICTSI)—controlled by billionaire Enrique Razon Jr—will spend $450 million this year to expand its ports in Africa, Asia and South America.
ICTSI is increasing capital expenditures this year by about 34%, compared to the 2023 level as it continues to expand overseas. The budget will fund concession fees in Congo as well as expansion plans in Brazil and Mexico.
The Manila-based company is also deploying the fresh capital to construct a multipurpose cargo terminal in Indonesia that’s slated to open in September, while it upgrades its port facilities in the central Philippine island of Iloilo.
The projects will be supported by strong cash flows. ICTSI’s net profit jumped 36% to $209.9 million in the first quarter compared to the previous year as gross revenue increased 11% to $637.7 million.
“Our balance sheet is robust and cash generation has been very strong, with free cash flow up 46% during the quarter, further reinforcing our ability to invest and capitalize on growth opportunities,” Razon said in a statement on Monday as the company announced its quarterly results.
The port business was started by Razon’s grandfather in Manila in 1916. It was rebuilt by his grandfather after World War II and expanded by Razon globally in recent decades. ICTSI now operates across 20 countries and employs over 11,000 people.
Besides ICTSI, Razon is also the controlling shareholder of Philippine-listed Bloomberry Resorts—operator of the Solaire Resort and Casino in Manila—as well as privately held Prime Infrastructure Capital, which has been building its portfolio of water utilities, gas and renewable energy assets. Razon has a net worth of about $10.4 billion, according to Forbes’ real-time data.
