International operations continue to be a significant contributor to the earnings of the Philippines-based company. Foreign operations accounted for 51% of its 2007 consolidated net income, compared with 60% in 2006; the slight decline was due to start-up costs at new terminals and the continued strength of the Philippine peso.
“All our existing terminals contributed excellent growth in volumes, revenues and cash flows and drove our earnings growth in 2007. In addition, we succeeded in acquiring five new terminals in China, Syria, Georgia, Ecuador and Colombia and completed a significant equity capital raising exercise,” said Enrique K. Razon Jr., ICTSI chairman and president.
ICTSI handled a consolidated volume of 3,007,216 teu in 2007, 51% higher than the 1,995,905 teu handled in 2006. Domestic operations accounted for 1,611,826 teu handled, or 54% of consolidated volumes, for the full year. Volumes at the company’s Manila operation increased by 14%, from 1,198,875 teu to 1,372,251 teu. Foreign container volumes grew 83% over the year, driven principally by the addition of the new China, Ecuador and Syria port operations and exceptionally strong growth at the company’s operations in Poland, Brazil and Madagascar.
Foreign container volumes now account for 46% of the company’s total with 38% in 2006. Consolidated volume for the fourth quarter of the year was 911,418 teu, 66% higher than the fourth quarter of 2006.
ICTSI invested P=11.6bn during 2007 to expand handling capacity and improve the operating efficiency of its operations in Manila, Poland, Brazil and Madagascar and to pay for the acquisition and rehabilitation of new terminals in Ecuador, China, Syria, Georgia, Colombia and Davao in the Philippines.