Philippine magnate Enrique Razon consolidates interests in Manila port in ICTSI
Billionaire Enrique Razon consolidates his stake in the Manila Port Center into International Container Terminal Services Inc. (ICTSI) as part of initiatives to increase efficiency in the busiest port in the Philippines.
ICTSI, which is controlled by Razon, has agreed to acquire Manila Harbor Center Port Services Inc. for 2.4 billion pesos ($ 51 million) from Prime Strategic Holdings Inc., according to a stock exchange filing. Prime Strategic is Razon’s holding company for its interest in infrastructure investments such as the Chico hydroelectric project in the northern Philippines.
“We believe there is a strong opportunity to generate greater efficiency in the port area through better and more coordinated use of facilities and through centralized management of bulk handling activities,” ICTSI said in a statement. .
The transaction is expected to be finalized by mid-2021. With the acquisition of the Manila Harbor Center, ICTSI will own three terminals in the Port of Manila, including its flagship asset, the Manila International Container Terminal (MICT) as well as the Manila North Harbor Port, a joint venture between ICTSI and billionaire Ramon Ang’s San Miguel. Corp.
“The transaction enables ICTSI to generate efficiencies and benefit from synergies across the entire Manila Bay waterfront,” said ICTSI. MICT has an annual container handling capacity of 3.3 million 20-foot equivalent units (TEUs), while the North Port of Manila can handle 2.2 million TEUs annually. The Manila Harbor Center is a bulk terminal that moved more than 4.3 million tonnes of cargo in 2020.
ICTSI earlier this month reported growth of 51% in its net profit for the first quarter as global trade recovers from the Covid-19 pandemic. Razon’s grandfather started the business with a port in Manila in 1916, and his father rebuilt it after World War II. Razon has grown the business globally by establishing a presence in ports in Asia, the Middle East, Africa, Europe and Latin America.
Razon, 61, was ranked the second richest person in the Philippines on the list of world billionaires released in April. With a net worth of $ 5.5 billion, he also owns interests in power generation, water distribution and gaming.