The volume increase was mainly due to continuous growth in international and domestic trade in most of the Company’s terminals and the volume generated by the Company’s new Pakistan International Container Terminal (PICT) in Karachi and the PT Olah Jasa Andal (PT OJA) terminal in Jakarta, Indonesia.
Excluding the volume from these two recent acquisitions and the effect of the cessation of operations in Syria in January 2013, organic volume growth remained flat. ICTI’s seven terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 79% of the Group’s consolidated volume in the first half of 2013.
The 20% increase in revenues was mainly due to higher storage revenues and ancillary services, favorable volume mix, tariff rate increases in some terminals, and the revenue contribution from the new terminals in Jakarta and Karachi, with the seven terminal operations accounting for 85% percent of the Group’s revenues in H1 2013.
Cash operating expenses in H1 grew 15% to US$171.9m mainly driven by higher volume-related expenses (e.g. on-call labour, fuel, power, repairs and maintenance), government-mandated and contracted salary rate increases in certain terminals, higher business development expenses, and the inclusion of the expenses of the new Jakarta and Karachi terminals.
Financing charges and other expenses for the period increased 53% to US$24.8m due to higher outstanding interest-bearing debt. ICTSI issued US$400m of 10 year bonds in January 2013 to fund its capex programme for 2013 and refinance medium-term loans.
Capex amounted to US$280.1m, approximately 51% of the US$550m budget for the full year 2013. The established budget is mainly allocated for the completion of terminal development projects in Mexico and Argentina, and the ramp-up of construction activities in Colombia and Davao, southern Philippines.