International Container Terminal Services Inc. (ICTSI) said the tariff policies of US President Donald Trump will not significantly affect its global operations, with the exception of its terminal operations in Mexico.
“Too early to tell the impact since Trump is flip-flopping every day. It is also early to tell on how these tariffs will settle, our operations are very diverse, the only major impact that could be possible would be Manzanillo terminal in Mexico. But, so far it is still a wait and see,” ICTSI chairman and president Enrique Razon Jr. said during the company’s virtual stockholders’ meeting.
“Out of our portfolio trade with the US is only 3 percent. I suspect with the massive industrial installed capacity of China, they will be looking for other markets. So it may be offset. One offsets the other,” he said.
Trump’s “Liberation Day” proclamation on April 2, 2025 implemented a minimum 10-percent tariff on all US imports, with higher tariffs imposed on imports from 57 specific countries.
ICTSI earlier reported a net income of $849.80 million last year, up 66 percent from $511.53 million in 2023.
The higher net income for 2024 included nonrecurring income from settlement of legal claims at ICTSI Oregon in the first quarter of 2024 and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA), Jakarta, Indonesia.
The nonrecurring expenses in 2023 included the charge on goodwill attributed to Pakistan International Container Terminal (PICT), Karachi, Pakistan and other noncurrent assets.
Excluding the impact of nonrecurring income and charges in 2023 and 2024, net income would have grown 23 percent to $830.94 million.
The group’s estimated capital expenditures (capex) for 2025 is about $580 million, up from $517.14 million in 2024.
The estimated capex will be utilized mainly for the continued development of the new project in Batangas; phase 3B expansion in CMSA, Manzanillo, Mexico; expansion of MICT in Manila and IDRC, Matadi DRC; new expansion projects at ICTSI Rio, Brazil and Mindanao Container Terminal in Cagayan de Oro; various other equipment acquisitions and upgrades; and maintenance capex.
